 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Clear Wireless
| reply to me1212
Re: Current customers said by me1212:Actually TW's CEO said that is was to fight off internet video, he even said so in the article they have here on DSLR today. I have to imagine that quote was taken slightly out of context.
Impossible scaling factors aside, the funding for the development of content by media companies (like Viacom, Disney, NBC/Universal, CBS Entertainment, etc) comes from public broadcast and traditional cable and satellite paid TV providers. Should those contracts dry up due to lack of public demand, the money stream to support the development of content would need to still come from somewhere. The current online distribution offerings like that of Hulu are a loss leader. They're giving it away to drive interest in their programming and get people to watch more TV.
It's like coupons for a local store offering something for free. They do that to get you in the store so that as long as you're there you'll pick up other things and give them more business. Hulu is one of those coupons -- its purpose is to drive more people to TV, it cannot provide long term operations any more than a store can stay in business by simply giving everything away for free. |
