The End of Free TV on the Internet?

We have been hearing from a number of Chicken Little's about the end of TV on the Internet, or at least free TV. First, I do not think this is true. As more and more cable channels realize the need to grab larger shares of audiences (and Neilson learns how to count them), we shall see more free offers. Second, some changes may be in order to expand the selection of TV programs available to those of us who see the Internet as a good window onto all aspects of Hollywood. For instance, I see iTunes as a plus for Internet users and not a minus. The fact that you can get your favor program for $1.99 to $2.99 is not so horrible when you consider that in the past you would have had no real options for seeing these programs if you missed them on TV, unless you waited for reruns a few months later. Is it free? No. Is it damn convenient? Yes.

For instance, two shows I can easily pick up on the Internet as hosted by the cable channels are NBC's 30 Rock and Starz' Spartacus. Of course, you also have vehicles such as Fancast and Hulu, but this is where the angst comes in. Since Comcast bought NBC, the future of Hulu has been in doubt since it is partly owned by NBC and in direct competition with Comcast. In addition, Comcast lost about 233,000 subscribers in the last quarter of 2009 and its future is not so sunny. How much is due to Hulu and its imitators versus the monopolistic pricing of Comcast in a recession is anyone's guess, but I expect to see some blood in the water. Even so, the pricing strategies I am reading about are not absurd. For instance, Hulu is discussing providing the five most recent episodes for free and then you pay $4.99 per month to watch older episodes.

This said, some thought the DVD would lead to the end of movies, and yet what it did was bring back thousands of movies and television programs from the archives. The Old Guard always screams when change is marching down the avenue, and we are seeing it again. Of course, this is not to say the adjustment will be pretty. Just ask the record companies how they are adjusted to 99 cent songs on Amazon and iTunes. But again, these companies had a chance to be innovative and instead they simply sent lawyers after college kids. So much for embracing the future.

I am hopeful that free content will not only remain but grow as other parties find ways to enter the game. In addition, for a small fee, one will see new things they did not have access to before. The barriers to entry are low, and the skies the limit. So cheer up, kick back, and enjoy the show.