Will Tv Succumb to the Internet?

Ch. 3- Will TV Succumb to the Internet?

1. Some of the competitive forces that have challenged the television industry consists of widespread use of high-speed Internet access, powerful PCs with high-resolution display screens, iPhones, iPads, other mobile handhelds, and leading-edge file-sharing services have made downloading of video content from movies and television shows faster and easier than ever. [p.118] The Internet is also providing new ways for television studios to distribute and sell their content, and they are trying to take advantage of that opportunity. In addition, programs such as Netflix and Hulu allow consumers, for a minimum monthly fee, to subscribe in order to have access to hundreds of movies and full seasons of television shows. Netflix and Hulu can be accessed through your smartphone by downloading the application, going directly to their websites, using your tablet, or through the television as well. All these new forces have imposed a threat to the television industry. With technological advances, most consumers are attached to their tablets, smartphones, and PCs doing all their tasks.

2. The impact of disruptive technology on the companies discussed in this case are as follows, NBC, News Corp, and ABC Inc formed Hulu.com which is a website that offers streaming videos of television shows and movies from NBC, Fox, ABC, Comedy Central, PBS, USA Network, Bravo, FX, Speed, Sundance, Oxygen, etc. This impacts cable and satellite companies by diminishing their revenue because subscribers would be able to subscribe to Hulu.com for a fraction of the monthly fee a cable or satellite company would charge. [p.118]

3. The cable programming and delivery companies have responded to the Internet in an embracing manner. Cable companies are "striking back" and using the Internet "as another delivery system for its content". [p. 118] Most television channels such as ABC, NBC, CBS, etc are providing their television shows and movies to be able via their website.