Tuesday, May 20, 2008

Why Do You Need Linear TV?

"I think the Netflix Player proves all the essential concepts," says New York Times technology writer Saul Hansell. "If a TV, with a handful of extra chips, can provide an experience as satisfying as the Netflix Player can, why do we need any other form of video distribution?"

That indeed is an important question which ultimately will be decided by content owners and users, not distributors, with all due respect. If users decide they want to watch streaming media delivered over broadband and sent to the TV, and if a suitable revenue model can be devised, content providers are going to support the business model.

But don't discount traditional packaging partners. Program networks (packagers) historically have been effective at creating "appointment" TV or "big event" hype to drive audiences to content as a shared experience. They've proven effective brand creators as well.

It remains to be seen if they will continue to be as effective in a world when the while idea of "scheduled" viewing is in greater disfavor. But don't discount their ability to master whatever techniques are required to sustain linear viewing models.

There is a difference between turning on a television or other display to watch a specific piece of content, and turning on a TV just to "watch TV." Linear television isn't so helpful in the former case, but works pretty well in the latter case.

In the latter case, a packaged "channel" offers a fairly clear guide to what sort of content might be on at any given moment. For somebody who is not actively looking for a specfic program, but simply "something to watch," linear video and "brands" are fairly effective shortcuts.

Still, the Netflix Player seems to be simple enough to use, and reasonably enough priced, to get traction at this point in time. The Player is no immediate threat to traditional cable operators, satellite distributors, networks or telco video providers. Changes of this sort always take a while to get going.

So far, though, the simplicity, low cost, ease of porting to a TV display and access to free content arguably are better than any earlier approaches.

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