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Is the Internet killing television?
News
BY DEANDRA MORRISON Online reporter morrisond@jamaicaobserver.com  
August 21, 2017

Is the Internet killing television?

FEATURE

Ever since the birth of the Internet, pundits have argued that broadcast television was on its deathbed and successors such as YouTube, Netflix , Amazon Prime Video and more recently, Facebook’s Watch are lining up to inherit its glory.

Gone are the days when an entire family would sit together and watch their favourite game show or soap opera on TV. No one wants to do that when streaming their favourite shows online is literally at their fingertips.

On-demand entertainment such as Netflix is one of the biggest Internet success stories, starting out as just a US DVD rental business to become a global leader in the video industry.

Netflix has approximately 104 million subscribers across 190 countries watching anytime, anywhere and all without commercials or commitments at a basic rate of US$7.99-US$11.99 per month, giving the company a whopping US$3.8 billion in profits in 2014.

Meanwhile, according to a US study done by Defy Media, YouTube has captivated the youth who consume 21.1 hours of video as opposed to the 8.2 hours weekly they spend watching television.

Facebook has also joined the race in the bid to reinvent TV as we know it with its new video feature.

The multibillion-dollar social media network is rolling out a new video service, offering professionally produced shows in a challenge to rivals such as YouTube, and potentially to streaming providers like Netflix.

Media reports are that the Facebook service called ‘Watch’ will include a range of shows, from reality to comedy to live sports, the social network said in its announcement earlier this month. 

Facebook said it ranks content based on how relevant it is to the user, which can include factors such as how long a user watches a video, how many they watch to the end, and whether or not they watch with sound.

It seems traditional TV will inevitably have a hard time beating On-Demand TV services , however cable providers, won’t go without a fight. Many cable providers, like FLOW Jamaica, are extending their services to include mobile television.

The telecommunications giant has launched its FLOW ToGo app where users can watch popular TV channels and access specialised programming all from a web browser, smartphone, or a tablet over Wi-Fi or a data network.

In an interview with DigIT earlier this month, Managing Director Stephen Price made it clear that FLOW is not a supporter of the idea of net neutrality or devices that allow users to watch cable TV for free.

“The Amazon Fire stick, Netflix, similar devices don’t pay for broadcasting rights here. All are illegal and unlicensed in this territory. We will look to see how we can restrict that traffic,” Price noted.

But, how long can those restrictions hold when people are seeking affordable entertainment without the constant interruption of commercials?

According to Netflix’s chief product officer, Neil Hunt in a 2014 article published on Wired.com, commercials will also die with traditional TV as, he said, “The ad-free model seems to be very popular with consumers”.

He added: “We have to imagine that the Geicos and the Wendys and the Chevys will have to find a different place to advertise their wares in 2025.”

Netflix proved that it’s possible to build big business in television just by subscription and no ads, so what’s stopping the On- demand industry from taking over? Nothing. TV, as baby boomers know it, will die a slow and painful death pretty soon.

The only solution for cable companies is either to adapt or at least die trying.

FLOW’s ManagingDirector StephenPrice Photo: (JosephWellington)

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