Sunday, January 15, 2012

Do we need Cable ?

More and more people are cutting their cable subscriptions and are using services like Netflix, Hulu, YouTube, iTunes, Amazon movies, Google Movies to get their entertainment.

Is traditional model of distribution of content through Cable relevant ?

What should on be on TV as "live" or What should be broadcast on TV for everyone ? It doesn't make much sense for TV channels to broadcast movies and traditional TV shows when only a fraction of people who receive the broadcast actually watch those shows. It would be more efficient to only broadcast events like news and live sports events which have value for being available immediately when the event occurs. These events and content becomes stale as time goes on and will have close to zero value after a certain period of time.

An ideal TV will only broadcast news and live sports events and every other traditional channels will be only available on demand and will be grouped in various Genres as done in Netflix or Hulu. I can imagine that TV show producers would argue that taped fake reality TV show audience can be tricked into believing that those shows are in fact real by broadcasting new episodes at the same time to a certain market. Even if exceptions are made for these "reality" shows there's no need to have broadcast the reruns of these shows. The channels could go from "live" mode to on demand mode once the broadcast event is complete. After all there's no economic or social value in getting everyone to watch "The Black Swan" on HBO at the same time!

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