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Television has come a long way since the simple, halcyon days of rabbit ears and a tiny three-channel universe.
According to a new report from IBM, disruptions in the television industry today will lead to long-term upheavals as dramatic as the music industry's trials and tribulations.
By 2012, the landscape will change so profoundly that the television industry will need open content and standards-based delivery platforms to generate revenue.
The report, dubbed The End of TV as We Know It: A Future Industry Perspective predicts that by 2012, the landscape will change so profoundly that the television industry will need open content and standards-based delivery platforms to generate revenue.
The report identifies several forces that are threatening TV's traditional business model and its traditional lifeline: advertising. These forces include:
· Fragmentation of viewing audiences, who divide their time between multiple media choices, channels and platforms;
· On-demand, self-programming and search features that allow consumers to bypass ads entirely.
· And competition between telcos, cable companies and Internet for viewers, and the associated ad revenue
"This is happening faster than the entertainment sector has recognized – the established supply chain is changing under their very noses," says Alan Sawyer, a Markham-based strategy consultant with IBM consulting services.
According to IBM, these disruptions will likely have a negative impact on Canada's television industry and culture, Today, Canadian advertisers have an advantage due to the CRTC's (Canadian Radio-television and Telecommunications Commission) requirement to substitute Canadian signals, which run Canadian ads, if programming is available simultaneously on both Canadian and U.S. channels.
It says that advantage will evaporate if alternate sources of content exist. Moreover, the CRTC's Canadian content rules will be harder to preserve as an increasingly Internet-based television (IPTV) landscape emerges.
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