Henry Blodget says the TV industry is a dinosaur waiting to die:
The traditional TV industry–cable companies, networks, and broadcasters–is where the newspaper industry was about five years ago:
Specifically, the TV industry’s attitude is the same as the newspaper industry’s attitude was circa 2002-2003: Stop calling us dinosaurs: We get digital; We’re growing our digital businesses; We’re investing in digital platforms; People still recall ads even when they fast-foward through them on DVRs; There’s no subtitute for TV ads. And traditional TV isn’t going away: Just look at our revenue and profits!
After saying all this same stuff for years, the newspaper industry figured out the hard way that, eventually, reality intrudes, that you can’t stuff the genie back in the bottle. And over the next 5-10 years, the TV industry will figure this out, too.
He’s right. The business/technology model of broadcast TV — where a small number of big providers produce streamed video and consumers watch it as it’s broadcast — just doesn’t make sense any more, outside of live events such as news and sports. And attempting on monetise viewing of non-live events (e.g. “TV shows”) won’t work either, because any restrictive service (e.g. one with DRM) will simply be bypassed by people downloading the content via BitTorrent.
(via Hacker News)