By Celina Jones
Millions of people have switched from the traditional television sets to other more interactive alternatives like iTunes and online video streaming sites. Many people have also realized that the search to cut their expenses has led them to the online entertainment providers that provide them more services and channels than traditional cable TV.
What Does the Switch Mean?
It’s clear that the old-fashioned television set that sat in the middle of the living room is quickly becoming a must have commodity for those people who have excess room in their homes or the extra cash to burn. People want their entertainment, just as they always have, but they want it in a way that is easy for them to use anywhere and that’s affordable too. Internet and TV services can be expensive so it is worth comparing various options from different satellite and cable TV companies on a comparison site.
According to Industry Executives:
According to the cable TV executives, the cable TV industry has the ability to shrug off the internet threat when it comes to viewing online content like movies and videos, mainly because it has the proper infrastructure that is better suited for delivering good quality pictures and high video delivery to the consumers.
On the other hand, if you ask the people who prefer to live stream and watch the latest videos on the internet like YouTube then you will get a totally different answer. This new generation says that the traditional TV is a dinosaur that has not been informed yet of its demise. Though both sides raise valid points for their opinions, the answer to whether the beloved TV is threatened by the rapidly spreading online culture of the new generation is a question that can only be answered in the years to come.
“Internet TV is not going to become a competitor for at least a decade, half generation, more,” says Convergence analyst Brahm Eiley. In its current form, Internet video “has no feet” to replace the TV access and content business, he argues. “Online is not returning what traditional TV can” in terms of economics, argues Eiley. “Nor is online in most cases a more enjoyable experience.”
Just follow the money: In the U.S. last year, Broadcasters and cable TV saw roughly $1.56 billion in Online TV related advertising revenue, a number Convergence says will jump to $1.83 billion in 2010. In contrast, Broadcasters and Cable Networks brought in $62 billion in TV advertising revenue last year, nearly $34 billion in programming fees from access providers, and, in turn, telcoTV, cable and satellite providers brought in $84 billion in TV subscription fees.
Eventually Wi-Fi and other interactive technology will catch up and may even overlap the quality and reliability of cable TV, but for now we’re not even close. According to a latest report, the more time an individual spends streaming media, the less time they spend watching it on traditional TV, which could make sense. If a person has already seen this week’s episode of their favorite TV show they don’t need to catch a rerun of it on their TV.
So when you hear about traditional TV being in danger of becoming extinct or something like that, nod your head but do so knowing that things aren’t changing as quickly as some may want you to believe. Little is changing in terms of TV service now.
Good old-fashioned cable TV is still the best way to watch some great entertainment. There is no buffering and unless you have a dish setup outside in a powerful rain storm, you aren’t going to lose the broadcast randomly.
Celina is a senior analyst of a consulting team at High Speed Internet who also has a vast experience in marketing and financial services. She also often writes blogs and articles which provide useful information on the different uses of the internet including the way it has changed the landscape of traditional cable TV.