Web TV - Game On

This weekend England play a World Cup qualifying game in the Ukraine.  One notable aspect of the match will be that people in the UK will only be able to watch it via the web, on a pay-per-play basis.  It’s yet another example of the trends that are morphing TV as we know it into a new modern web-based format.  The most significant force behind this change is economic.  The match was originally planned to be shown on satellite TV by Setanta.  However, after the Irish company was credit crunched by super-high gearing and a collapse in the advertising market, the rights were picked up by Kentaro which will stream the game to one million football fans this weekend for a modest one-off fee.  It’s snack TV as opposed to the mega-banquet offered by Sky.  Just like Apple’s iTunes is for people who wish to consume their music tapas-style.  The most notable point about this new commercial offering is that it’s not new.  Football fans who can’t afford premium TV packages or Premier League tickets have long been following their beloved teams via illegal web streams.  Often putting up with terrible quality, inconsistent transmissions, tiny pop-up screens and Chinese commentary.  I'm sure many of these fans will be happy to pay a little this weekend.  As Arseblog, the popular Arsenal FC blogger puts it: 'If I could pay a couple of quid and watch the game via a stream that wasn't up and down and freezing and jumping and refreshing I'd happily do it. The same goes for league games.'  Expect plenty more such innovation in TV.  Just don’t expect the TV industry to be involved.  Incredibly, the traditional business is mirroring the plight of its musical cousin by ignoring clear signals from customers about what they want.  Just like the Big Record Labels, the Big TV Networks are falling on the wrong side of the Innovator’s Dilemma.  The plight whereby companies desperately attempt to prop up their existing revenues and fail to engage with exciting new technologies that people love.  Despite the fact that if they did embrace new kit and behaviour their tired old businesses would get a shot in the arm, instilling some faith among jaded shareholders.  But they aren't.  So a gap appears in the market and and new innovators pile in, building products in line with public demand.  And the new Web TV ecosystem begins to take shape.  All built on the fast-growing popularity of watching TV on a laptop or PC.  A distinction that will soon be redundant as devices merge.  But don't make the mistake of thinking that it will then be back to business as usual.  That's just where the fun begins as TV content becomes another web application upon which other tools can be built.  And then it's game on.

Comments

[Orla]

Interesting post and it's an interesting concept. Isn't it just straight forward though? You just sign up on an iPod Touch and connect it to the TV or connect a laptop to the TV with a HDMI cable? I haven't actually tried. The media coverage has been so negative instead offering solutions.

[James Cherkoff]

Thanks Orla, yes I think it is that straightforward. However, TV moving onto the web has plenty of implications and as I say it won't be business as usual. I think it's interesting because the TV industry seems to have decided to just ignore the changes in their market. After all what is TV these days...? http://bit.ly/vYn8l

[Rory MacDonald]

Great post bang on the money and a relief from you misguided spate of recent Facebook worship (-;

@Orla - the media coverage is likely to be bad, because Murdoch has no monopoly on the Internet, anyone (with access to a server farm and a lot of bandwidth - so anyone) can set up in competition and cut into his short term economic rent.

@James
"That's just where the fun begins as TV content becomes another web application upon which other tools can be built"
This is so on the money, its unreal. Free streamed premiership matches delivered through a Coral/William Hill widget? (I have always felt that if the bookies could do a better job of capturing punters when they are fueled up on mid-match adrenaline, they would be quids-in).

@Lilly Allen and The music industry
Look and learn, if you have half an ounce of intelligence and original thought, you can make plenty of money from free culture and the internet. Streamed concerts, paid online access to backstage chat with your favorite artist, I have a several other schemes that would work even better - but I am not announcing them on a James' blog. Ok so you can't sell a 30p piece of plastic for £14.99 anymore - get over it.

[James Cherkoff]

Hey Rory, I'm glad to be back on your menu of choice! ;-)