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Television 2020 – The Web Migration (page 42)On the next pages from thereon, you'll find an analysis of key factors that are specific to the TV industry and three scenarios and their -possible- outcomes.
All the conditions for the television industry’s migration to the Internet are now in place:
• consumers are comfortable with online visual consumption;
• technical solutions that give users access to Internet content on their television sets have been
• open Internet access is possible from mobile telephones;
• premium content is available on the Web;
• online video quality of service is improving;
• new players from industries related to the television industry have aligned their strategies.
While this migration will be gradual, it will have a deep-seated impact on the industry:
• the exclusive rights model will no longer be the standard;
• some consumers will abandon traditional managed networks;
• a globalization trend will be sparked, to the benefit of the major rights holders.
Unlike the music and print media industries, the TV industry is gaining a strong position on the Web. As a result, television is poised to play a central role in video services. This offensive strategy will likely pay off down the line, but does not entirely eliminate the possibility of destroying value. There are structural reasons for this, including a fiercely competitive online advertising market and a lack of control over program circulation.Is this a classic example of Creative Destruction?