How will the television content get to us tomorrow?

In the previous post I outlined my reasons for thinking that the current television content distribution model is rapidly becoming obsolete.

Networks and studios should adapt to meet the changing market needs.

Here are two examples of how this could work :

1. Studio’s sell direct to the public via the internet. This model may not stop the piracy which is plaguing the industry because the gap between free and cheap is still a big one. The networks are bypassed entirely because they currently add little to no value to the user. The studio’s benefit because they know exactly what the viewer wants and waste very little money producing shows that no-one watches.

2. The other model which may have sustainability is for the networks to add value by becoming content aggregators. They continue to buy from studios and sell to viewers either on a “pay-per-view” arrangement or on an advertising subsidised basis, but more likely in a combination of the two.

The networks get to know their viewers through proper investment in customer relationship management. They use this information to supply advertisers the opportunity to air targeted marketing content to the viewer.

Content is still accessed via the internet, meaning you can watch what you want when want to and the interruption of advertising is limited to products you actually may have an interest in.

Advertisers only pay networks for the advertising sold, minimizing the shotgun approach they currently adopt.

If these ideas sound far-fetched, think again. iTunes is already selling music under this model, you can already pull down movies using your Foxtel remote and there is a new music site call Guvera which is looking to test a similar approach with music sales.

The studios don't want to do this, they may even fight it - but sooner or later something is going to give.