Trends Report

Preparing For The Coming Online TV Backlash

An Open Letter To An Industry On The Verge Of A Big Mistake

March 13th, 2009
James McQuivey, PhD, VP, Research Director
James McQuivey, PhD VP, Research Director
With contributors:
Mark Mulligan , Dan Wilkos

Summary

Online TV viewing has been a smash hit in the US, driving tens of millions of viewers to watch hundreds of millions of TV shows each month. However, the online TV model is coming under fire inside the secretive halls of content producers and rights holders. Exacerbated by a recession in which advertisers are cutting back on all ad spending, this rough patch may enable naysayers inside content companies to trip up the online TV business. Not only is this a mistake for the health of online TV, it's a mistake for the health of the future of convenient multiplatform video delivery. Instead, we recommend that content owners and online TV show aggregators aggressively work together to strengthen the model and integrate it into broader strategies that include the TV as well as connected devices in the living room and elsewhere. If not, somebody else will serve consumers, legally or not.

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