AUGUST 7, 2009

Television And The Web: To Converge Or Not?

Last week, Bill Ives pointed out an interesting debate by Stanford University on whether web video and television should converge and offer content across both mediums seamlessly. In light of some related developments, such as the proposal of a “TV Everywhere” payment model in March, and the increasing value of online advertisements that run alongside episodes, I think this debate really hits on an important issue in the growth of online media consumption. Now that the audience watches shows both on their TVs and online, will the lines between these two mediums blur? The Stanford representatives theorized:

With the convergence of media, we expect the emergence of appliances that will be able to display some sort of standardized media format. These devices will most likely vary in size, intended placement (living room, kitchen, bedroom), and functionality, but will have the common capability of being able to interpret the given converged media format. […] [T]hese information appliances will be able to provide a richer environment for viewing and interaction.

The idea of having fully integrated multimedia appliances in your home is very appealing. I currently watch a lot of shows on my TV through my cable provider, but I also watch some shows on official network pages online and download shows to watch on a computer hooked up to the TV. I would definitely enjoy the opportunity to easily watch a video from a TV, computer, or handheld device in any room of the house. It would also be convenient to have a universal format for video content that I can store and share (at least within my household) with no difficulty. However, the biggest challenge in this vision is developing an effective payment scheme that leaves both consumers and media/cable companies satisfied.

When “TV Everywhere” was first proposed, watchdog group Public Knowledge issued a statement criticizing the model, pointing out that the internet already operates on the fundamental concept of offering accessible, open content. “TV Everywhere”, as proposed by Comcast and Time Warner, aims to make cable TV content available both on TV and online - essentially asking users to subscribe to a cable package if they want the convenience of viewing premium cable content online. It is clear that the reasoning behind this plan helps preserve the revenue that cable companies earn by offering content in packages, as well as the relationship between cable companies and cable networks. With such a closed distribution method, cable companies hope to maintain control over who can see their content. This is definitely a model that conflicts with current video distribution models online like Hulu, which encourage sharing and discussion.

There is a great deal of tension among cable providers and content distributors right now, especially in the face of the current recession. After reading about the TV/online video debate, I really think that this struggle to figure out a good way to make money will greatly affect the way we consume our video in 5-10 years.