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When Will The Internet Fully Embrace Live Stream TV?
Year after year we seem to hear rumours that a massive merger between a major TV company and an online media delivery company is on the way, however as yet we have seen nothing to suggest the move in this direction has built up any great pace. Even though there are some very loose internet TV links in place at the moment, there has been no real commitment from the majors.
While there are many issues to consider in the great movement to merge TV companies with online delivery networks, one of the more complicated to resolve is the value / cost of services. How do you price the cost of an online license to broadcast a major live event on the internet? Do you include the whole online “world” as a potential market place, one area of the world or fans of a certain style of TV?
The potential to mis-price the value of a live event in terms of increased revenue and increased exposure for the broadcaster is enormous. Imagine basing the cost of the Super Bowl on the traditional worldwide TV market as oppose to the potential online market. Imagine how many more people would tune in while on the internet if the game was available, the quality was there and it was priced competitively. The potential to “give away” an event is enormous and while there will at some stage be a test period with regards to pricing, who is willing to risk the potential loss of revenue by mis-pricing the rights to a major event?
While have seen some limited live TV exposure on the internet in the shape of music concerts, the success of these events has been open to debate with many suggesting the investment into delivery technology was a little lacking. There is no doubt that in the not too distant future the consumer will be crying out for events such as the Super Bowl to be broadcast live online, but who will be the first in the industry to take on this challenge remains to be seen.
