In a world of Hulu, HD TV, and online streaming, the television industry has had no choice but to embrace shifting consumer trends within the industry. Now that Internet streaming has allowed consumers to watch whatever they want, whenever they want, it is becoming harder for cable providers to keep up with consumer demand. Television broadcasters must take advantage of the bandwidth that they have available to them if they are to compete in the viewing market. With streaming sites such as Hulu, Amazon, and Netflix gaining competitive advantage in the market, television broadcasters can no longer sit back and continue to run as they always have. Accordingly, these television stations have begun making much-needed modifications. Since 2009, television broadcasters have begun shutting down their analog systems and converting to strictly digital in compliance with the Digital Television Transition and Public Safety Act. In February of 2009, the FCC required all hybrid television producers, including companies such as Time Warner Cable and Verizon, to shut down their analog systems and convert to digital transmissions only. Due to this transition, the analog …show more content…
The conversion allows a simpler compression of signals than analog, which in turn allows more content to be delivered to subscribers. 36 channels turns into over 400, a significant portion of which are HD, which is a bit of a waste on analog signals. This digital conversion frees up analog spectrums and allows for those spectrums to be utilized by first responders as well as fire and rescue squads. It also improves the quality of sound to because, as analog systems convert to digital, audio systems simultaneously convert to surround and enhanced sound (Dolby Digital). In short, providers are able to supply a greater amount of channels and offerings while consumers receive a higher quality product and
I believe that CRTC’s intentions were good in terms of the implementation of “skinny-basic” packages. However, I believe that this decision occurred too late in the game to be both beneficial for consumers, and TV service providers. At this point in time, in order to gain access to much cheaper online streaming options, many Canadian’s as well as cord-cutters, have already abandoned their cable and satellite subscriptions. Therefore, if this decision had been implemented a few years back, then the retention of subscribers would potentially remain higher, thus generating more revenue for BDU’s. Furthermore, these online options appeal to consumers due to the deliverance of more choice and flexibility in terms of when and where they can watch their desired content, which is the main reason CRTC does not regulate internet content. Despite these digital challenges, TV continues to prevail as powerful medium.
* Hulu harnessed existing technologies namely online video and broadcast media to create a new platform that was “focused on helping users find and enjoy the world’s premium, professionally produced content when where and how they want it”. The platform brought together professional content owners/providers, advertisers and content consumers/users in a platform mediated network.
Hulu sets themselves apart from their main competitor, Netflix, by offering the current seasons of shows as early as the day after they air on TV. But, this is starting to concern one of their main investors, Time Warner. Time Warner, is concerned with Hulu’s business model because they fear consumers will drop their “pay-TV subscriptions” (Hagey & Ramachandran, 2016). While Time Warner has a stake in the success of Hulu, they are concerned that Hulu will
TV network stations also faced changes thanks to TiVo’s innovative technology. The normal rules of placing shows on specific days at a certain time no longer applied since people could now record and watch any show at any time. On the other hand, this also led to networks being able to track how well a new show is doing before it even airs by looking at how many people were recording it.
But, unfortunately due to the enormous cost and very little public interest and demand Time-Warner decided to pull the plug on its nationwide change over to digital lines. This shows that the cable companies are surpassing the consumer demand for technology, making this industry a very hard one to market.
The most important challenges for a new television network include advertising, settling on a target demographic, building a distribution system, and market the new brand. With the case of CW, dividing the responsibilities between the former WB and former UPN networks was also a major challenge, in addition to deciding which shows from each network would continue. Distribution is the primary concern, as it’s important for the network, especially a new one, to reach as much of the country as possible. Finding affiliate stations and distributors was crucial for the CW to start off successfully. Fortunately for them, they were able to secure many of the former UPN and WB stations and distributors and broadcast to 95% of the country,
2). Therefore, Hastings have changed the dynamics of the movie-rentals and entertainment industry in which people tend to watch movies whenever they want rather than waiting at video stores or entertainment channels. Moreover, Hastings adaptability of business towards the live streaming of TV shows has impacted the cable service industry because Netflix is providing its customers with the hundreds of TV channels at low cost and high portability (Copeland,
However, in the era of the Internet, the market has changed. Cable television has been challenged by many alternative venues of media consumption, most notably in the form of the Internet. "There has been some competition from satellite TV players and (in a few areas) TV over IP" (Masnick 2008). "Thanks to the rise of Netflix, Hulu and hardware like the Roku box and Apple TV, cutting the cord to cable TV doesn't mean cutting yourself off from your favorite shows and channels" (Glaser 2010). However, most high-speed Internet consumers receive their Internet connection from the cable company, which indirectly funnels money to support cable TV.
The next set of forces is the threat of new entrants and possible substitutes that the TV service providers industry faces. Possible new entrants into the industry are Verizon, AT&T, Sprint, Apple, and Amazon. All of these entries could pose a strong threat to the industry. They have similar technologies and have the
The provision of entertainment can be done in many different ways, and each company has their own unique method of doing so. Turner Broadcasting has historically lacked innovation in the growing marketplace. They have had an adaptive growth strategy through delayed acquisitions, including historical acquisitions of Court TV and Legacy Film Properties and more recent acquisitions of Bleacher Report and iStreamPlanet. When John Martin took over as the CEO of Turner, however, he introduced a change in strategy called “Turner 2020”. Turner is now focusing on being the front runner and pioneer of innovative concepts. This begins with a consumer centric strategy focusing on content creation and the increased investment in internal projects. Additionally, Turner is working “to keep audiences engaged and bring (along) new viewers” while driving change in the industry. The resulting ownership, from Turner 2020, of innovative technology as well as creative intellectual property, generates various revenue creation streams. Turner has not eliminated the capability of adaptation, however, is creating an overwhelming focus on modernization. Shifting the focus of the company from adaptive to innovative will ideally guide Turner’s growth in the
As an individual who is looking to cut cable and pursue a streaming service, I believe that Hulu’s $39.99 Live Stream subscription, as described in the case, could be a strong supplement for pay TV. Although margins for this offering are predicted to be low, I believe that the development of such a subscription illustrates Hulu’s ability to complete market research and listen to consumers. This package indicated that Hulu understands that consumers want Live TV, but wishes to avoid costly bills and wasted
Summarise the future of the sectors of free-to-air television, retail and exhibition due to the rise of
People have this perception that they need a more powerful HDTV antenna because of directivity and amplification. This is not true. HDTV is actually more noise immune than analog television and will be able to produce high quality video at significantly lower signal-to-noise ratios. Digital TV needs less antenna gain and can tolerate higher noise levels. A HDTV antenna and a regular antenna have similar directivity/gain properties so you should receive analog or digital broadcasts with the same good quality.
Many years ago, people gathered around the TV-sets and later on families together with friends met up and watched their favourite shows. Nowadays, due to the availability of low-priced technology as well as various channels and programmes, people lock themselves in a private space watching TV. (Harboe cited in Nicole C.Stephan W.Brenda B.Christine G. 2015). As a result, people have multiple preferences in TV programmes but nowhere to express their opinions. “One-way” communication in television industry is facing a big challenge. Web 2.0 comes out and provides a revolutionary opportunity for television industry, after that, social television is born at the right moment.
The ITU document on Digitization highlights that “Digitalization of broadcasting by 2015 represents a major landmark towards establishing a more equitable, just and people- centred information society. The digital switchovers will leap-frog existing technologies to connect the unconnected in underserved and remote communities and close the digital divide.”(Akin Akingbulu & Hendrik Bussiek,(2010) as cited by T. A Kenneth, (Dec. 13, 2013).