Hollywood’s Radio and Television Society had a powerhouse lineup for its Newsmaker Luncheon:
While the headline was how MySpace failed to abide by a “fact about capitalism,” what Joseph Schumpeter referred to as Creative Destruction, other topics included the popularization of the Hulu business model.
Hulu took a page from its predecessor YouTube and focuses on delivering low resolution video. It differs in that it streams only official content from the major broadcasters. The hook is on demand, online access to a large library of high value content, as opposed to the structured programming, broadcast of HD and DTV over the air (OTA).
Kilar also cited the reduced commercial load on the Internet — and said the number of ads on online video is a throwback to the Golden Age of Television, when half-hour TV programs ran for 26 minutes (today, increased ad time has reduced that number to 22).
You want another paradox? How about going over the top (OTT) to return to ad supported programming? The draw does exist:
- less advertising, better targeted at the viewer(s)
- what you want to watch, when you want to watch it
- a substantial savings in terms of recurring cost
Some of you may actually have grown up without a remote control, let alone a digital video recorder (DVR). Leaning back and sitting through a commercial may even be a novel change of pace. Remember, you always have the option to get up and take the garbage out. Or check your email and twitter.
In this new digital age there are new problems that OTT solves:
- what recordings gets deleted from the DVR to make room for the season premier of Glee and Flash Forward?
- What if you move or change service, and have to turn in your DVR?
- What if the President’s speech goes long and the last few minutes get chopped?
- What if you forgot to record the premier of One Tree Hill and don’t have remote access?
The answer: let the content owner store it in the cloud for you. The cost: a few commercials. Remember sitting back and watching a few ads? The ad days. Those were the days.