Will Tv Succumb to the Internet

Topics: Business model, Subscription business model, Television Pages: 2 (493 words) Published: October 9, 2012
1.) The internet is the main competitive force that has challenged the television industry. Consumers can access YouTube, Hulu, Netflix and many other sites to view shows and movies online or even on their smart phones. The cable companies fear that if this continues, the number of people cancelling their service will increase drastically. 2.) There is a steady impact from disruptive technology on the companies from this case. The cable companies themselves are embracing the internet as another delivery system for its content. Hulu is still unprofitable even after it generated over $100 million in advertising revenue. Hulu is under pressure to earn even more advertising dollars and to set up a subscription service. 3.) The cable programming and delivery companies are striking back. The internet has provided new ways for television studios to distribute and sell their content. Television broadcast networks have put television shows on their websites. In July 2009, Comcast Corp. began a trial program to bring some network shows to the web. Cable networks are hoping that by making more television shows available online for subscribers, they will preserve and possible expand the cable TV subscription model. 4.) The cable company has to remain profitable and retain their subscribers. The internet is another tool for them to keep their customers happy. Also, cable programmers stand to earn more advertising revenue from their online content. This is because viewers can’t skip ads on TV programs streamed from the web. Technology is always evolving so the cable industry just has to keep up and evolve with it. 5.) I do believe the cable companies have found a successful new business model not so much to compete with the internet but to use it as a resource. The internet is a wonderful tool and pretty much everyone utilizes it. The cable industry would be foolish not to utilize it too; and they are. People who subscribe to cable can also watch their shows...
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