Commentary

Questions About TV's Future Are Largely Answered Now

So TV is on a continual revolutionary path? Changes in how people consume it are coming so swiftly, so unexpectedly that network and advertising executives would be wise to apportion at least an hour a day just to stay on top of things, right?

Maybe not. The pace of upheaval now seems to be reaching some stasis.

As contrary as it may seem, the remarkable transformation -- starting with ABC making shows available on iTunes in late 2005; then moving through the YouTube and Netflix booms; and now with ESPN running spots showing how a cowboy can watch sports on an iPad in the wilds -- has taken its final shape. The broad architecture of TV’s future is now settled.

Yes, technology will continue to offer new toys and opportunities on the distribution front, many of which will be on display at next week’s Consumer Electronics Show. Internet-connected TVs are touted as the next big thing. As MediaPost’s Wayne Friedman has suggested, voice recognition allowing a viewer to easily search for a show (Apple’s Siri product could lead) could stir some interest.

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But, the future of TV now boils down to a five-letter acronym sounding like a collegiate sports conference: ECAAA. “Excellent Content Anytime, Anywhere, Any Device.”

That was hammered home with Wednesday’s announcement of the sprawling distribution deal between Disney and Comcast. The contract might be a thousand pages long, but boils down to Disney content being made available over Comcast beams just about everywhere anyhow.

Large media companies who’ve spent the past five years with broad efforts to see around corners – with some fear that a new technology will be an unconquerable game-changer -- can now narrow their focus and relax a bit. Their long-term strength is assured and the Disney-Comcast deal is the template.

Content providers need only worry about creating the most compelling dramas and comedies, offering the most informative (and entertaining) news; and ensuring they have abundant live sports. Their end-game distribution options are basically there now and taken care of by other entities. (Ad-skipping will continue, but so far they have maneuvered around it and video on demand and Web content isn't allowing for it.) 

The distributors, meanwhile, need just to land rights to the excellent content and make sure they can deliver it at home and on the go pristinely. 

ECAAA.

Of course, it’s all easier said than done and investment will have to continue to escalate.

Fragmentation means it’s harder to create popular shows than ever for networks and studios. And, distributors with strength in one venue – such as DirecTV -- will need to ensure they can deliver outside of their comfort zone, namely outside the living room. But, partnerships and TV Everywhere deals should take care of that.

What about cord-cutting? That will continue, but the snippers will still be watching premium content over pipes owned by major distributors.

People may enjoy interactive TV, but the bet is it will be little more than boutique. In the future, they may want to program their DVRs from their work computers or watch live TV on their iPads in the bath. Oops, they can already do both. 

ECAAA was driven home Thursday by a top executive at Comcast, which is perhaps the best company to divine TV’s future with well over 20 million TV customers and an impressive array of content assets from NBC News to the Kardashians.

Comcast CFO Michael Angelakis indicated the company asks itself two questions during planning. Will consumers keep wanting more video? Answer: “resoundingly” yes. Will they covet more flexibility? Yup, the “broadest array of content choices over any platform anytime.”

The answers elicit TV's end game. That's here now.

2 comments about "Questions About TV's Future Are Largely Answered Now".
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  1. Richard Melman from RichardM, January 6, 2012 at 6:14 a.m.

    "Content providers need only worry about creating the most compelling dramas and comedies... Their end-game distribution options are basically there now and taken care of by other entities. " Really? But who is going to pay for it? It takes a very long time for a long tail to wag and content providers don't have patient bank managers.

  2. Douglas Ferguson from College of Charleston, January 10, 2012 at 12:04 p.m.

    Much too sanguine for me. And naive. Who needs Disney or Comcast anyway, in a disintermediated world? My kids don't watch Disney. They watch YouTube. They don't care about Comcast. Their lack of brand allegiance should strike fear in every old media corporation.

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