Sunday, April 05, 2009

IPTV v. Internet TV -- What's at Stake -- Part II

My last post discussed the vastly different visions of IPTV and Internet TV.  My strong belief and conclusion is that Internet TV's victory is inevitable in the end, much to the chagrin of the cable companies.

A nice overview of what's at stake from the cable companies' perspective -- and their strategy to push the world to closed walled garden approaches -- is found in a recent Business Week article (click on this link).  In this article, Time Warner cable's CEO, Glenn Britt, vows that Internet TV cannot and will not succeed.  Because the cable companies currently finance much of today's television production by paying content producers (media companies) to carry their content, Britt concludes that "If I don't have a customer, the programmers aren't going to have a customer."

But, while this eco-system/business model is here now and will be here in the short-term (largely as a result of pressure to maintain the status quo), that doesn't mean that it is here to stay.  Yes it is true that no one has really found a way yet to effectively monetize premium video content online.  But, that doesn't mean that it won't happen.  It will -- with a Chinese menu of advertising, subscriptions, and pay-per-ownership.  Let's not forget that online targeted ads are substantially more effective than today's television ad scatter-shod approach.

IPTV v. Internet TV -- the battle's on!