How the Internet is Changing TV


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eMarketer, a website dealing with Internet marketing, reports that 113 million Americans (35.5 percent of the population) use the Internet to serve programming to their televisions. They predict that by 2018 this will rise to 191 million people, or 58 percent of Americans.

This bodes well for services like Netflix and Hulu. It doesn’t bode well for Cable TV providers. The more viewers can access reasonably priced online services, the less desirable expensive Cable bundles will be.

Cable TV companies have been able to offer expensive “basic” bundles that include channels many consumers don’t want (different channels for different consumers). They can do this because only one company provides cable service to each specific neighborhood.

Internet-based services could offer things like family-friendly-only programming at a more reasonable price. MTV and other offensive networks would not have to be purchased if you wanted HGTV and the Food Network. Better still, the programming you like would be available on-demand. You could choose to watch Rachel Ray cook spaghetti or learn how to grow the best tomatoes on HGTV. Sports fans will be able to buy the games they want to see, and surely there will be ample sports analysis programs you can subscribe to at a reasonable price. Imagine as well news services from the perspective of your choice.

More than ever before, it appears that the consumer is becoming the master of his domain. Also, owning more mobile devices is becoming even more important.

By 2018, when 58 percent of Americans use the Internet to serve their television, the options available probably will be vastly larger. Cable TV providers are likely to offer more reasonably priced bundles, directly compete with Netflix and Hulu, or take a huge hit.

Of course, one downside to this could be that media conglomerates will be able to make much more money from more sources and become even bigger.

– Source: eMarketer, 06/13/14.

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