Nextflix today announced that streaming will be built into new TVs from Korean manufacturer LG. After recently purchasing an XBOX on boxing day, and noticing that you can also rent Netflix movies, as well as watch some independent streaming videos, I am hoping this means the end of Cable TV as we know it.
With cable, you’re paying broadcasters so they can make money off of you.
This is what I do not understand about the cable TV industry. In it’s current pricing model, the majority of what you’re paying for is not infrastructure, but for the content. In other words, you’re paying TV stations so they can make money off of you by selling advertisements. If the viewers go away, so does their revenue. So are not we, the viewers then, a resource that has value?
Wouldn’t it make more sense if broadcasters had to pay for viewers in order to make money off of selling advertising to them?
With the advent of all these set top boxes popping up, including traditional game consoles becoming one of these new media devices, hopefully this model will change. There will be many forces driving the change:
- Increased competition
- Direct access from the broadcaster to the viewer
- File sharing technologies
- A new generation of audience
Why do I think we’re paying too much for cable? This is how I look at it:
On average you pay $60 / month for cable. Multiply that by 12, $60 x 12 = $720. How many complete seasons of your favourite shows could you buy on DVD with $720? How many shows do you actually watch? Maybe 2 or 3 on average, 5 at most?
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