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Shades228
02-15-09, 06:27 PM
So far there seems to be many posts about this scattered in various threads with a lot of speculation about how it will progress. Rather then posting my thoughts in one of those threads I just decided to start a thread in the appropriate place.

Right now IPTV is seen as some as the future or a great way to save money. Right now it's a good option for catching something you missed or something that may help what you currently subscribe to. However it's only because right now the price is right and that's free for the shows. Business's aren't in business to give stuff away. They will have to figure out a way to get that model to turn a profit. Selling limited commercials for online generates that content but if it becomes too popular it will have negative effects.

If companies were to really decide to go all IPTV there would be some dramatic cascading changes to pricing for TV in general.


Reduced revenue at local level due to commercial sales loss.
Re-broadcasters determining it's not worth it to carry local stations
They would have to manage sports blackouts at a national level making it cost more on their support rather then leave it up to rebroadcasters
They would have to start charging for the additional costs.
The would have to eat the cost of constantly providing support to more viewers.
They would have to start supporting customer service.


I'm sure that there are a many more that could be added to that list but that's just what I thought of in a minute.

The biggest thing that I could see happening is that the cost of subscribing through that network would be offset due to re-broadcasters saying that now it's not worth as much to them. So, potentially, the bill for re-broadcasters could start to decrease.

Stations like ESPN, NFL, MLB, NHL will never be able to go national with the current league rules on blackouts. They wouldn't be able to enforce them online and they would lose money on their sports subscriptions.


With all of that said I like IPTV as it is now because I can use it to watch shows I might not normally watch or catch up on something when I'm traveling.

Funk Doctor
02-16-09, 09:25 AM
Business do give stuff away all the time if they can get advertising for it. Which is the model that Hulu and sites like it (including the homebases for most networks) follow.

At least for the time being that's the model they'll use. Stream a stripped down version of the show for free but with ads, and continue to sell DVD sets of the same with extras and such. It might not make much money on it's own now, but remember these shows still get revenue from advertising (and/or subscriber fees) and DVD sales before they get a dime from online ads. At this point that stuff is just gravy.

In fact the advertising on the web is more beneficial in some ways. You can use cookies and browsing history to really tailor ads for the person watching the show rather than to the 'group' most likely to watch the show on broadcast.