What they don’t have is “inventory!” Tellywood is digging in the very back of the closet for content to offer up for consumption. The old powerhouse series are back – StarTrek, MacGyver, The A-Team, I Dream of Jeanie, Dean Martin Show, anything, everything.
It’s all good. Still it isn’t enough.
Bypassing the walled garden guards, independent producers are realizing they can get music video and movie audience exposure without worshiping at the hallowed Tellywood doors. Creative hopefuls who weren’t tapped at the Tribeca, Toronto, Sundance, Vancouver, Minneapolis, Paris, London and other film festivals around the globe aren’t going home in defeat.
There are VOD, content management/distribution, IPTV (62 M subscribers WW by 2012 – eMarketer) and other video service providers eager to increase their inventory offerings and share in the proceeds – paid viewing or advertising supported.
People are turning on their computers and using the Internet for their video entertainment according to an IBM study because of:
- better content selection – 46%
- updated, fresher content – 25%
- trustworthiness – 24%
- faster downloading, streaming – 23%
- friends go there – 21%
- hipper, current environment – 12%
People across the age spectrum have found that their computer is more entertaining than their TV.
Figure 5 – Across the Board – Because millenials and Gen Xers grew up on computers and the Internet, you would expect them to be the individuals most likely to chuck their TV sets for online video entertainment. Interestingly though boomers and matures are just as interested in doing away with the rigid program schedule for anytime, anywhere viewing entertainment. Source – Deloitte Development, Harrison Group
We would expect online entertainment viewing to be dominated by kids but surprisingly Gen-Xers, Boomers and Matures are all turning off their regular program to enjoy online content.
Figure 6 – No Sex, Age Discrimination – Men, women, young, old they are all finding choice (and steadily improving quality) is a powerful draw to the Internet for their entertainment. Interestingly the new-found video freedom of choice has also helped stimulate media center computers in the living/family room. The rush isn’t overwhelming but it is occurring. Source – Pew Internet
Online entertainment is becoming so inviting, interesting and entertaining; more folks are undertaking the challenge of connecting their PC to their big screen TV (we paid to have it done).
Some Pixelization
We watched some of our shows on our laptop system and then on our big screen TV. Because of over pixelization, some things just look better on the big screen.
Ooppss – One of the problems facing Tellywood is that their content doesn’t always show well over the Web. Downloads to the computer can sometimes suffer from increased pixelization (as you see on the left) when the producers/directors really wanted you to enjoy the image on the right. Source — NW
Right now there’s more smoke than flames surrounding IPTV and content over the Internet but everyone industry can feel the heat of the consumers’ enthusiasm. There are currently about 288 million TV viewers in the U.S. and 189 million Internet users. At the same time there are 112 million TV households and 80 million Internet households. TV households will increase to 118 million by 2012 and Internet households 20 about 100 million.
Television still has a decent lead. But online video viewing will substantially suck viewers from their conventional entertainment habits, thus lowering the ad value. A growing number of consumers around the globe are seriously considering cutting loose their cable/satellite TV service for the Internet and IPTV.
Figure 7 – Willing to Change – Most disturbing to cable and satellite service providers is how willing people are to consider chucking those service altogether and shifting their viewing to the Web. With free content over the air and the ability to view when it is convenient for you, unplugging will be easier and easier for folks around the globe. Source – Zogby International
What’s not to prefer?
- content on your schedule instead of theirs
- advertising that seems to be better integrated and less intrusive with Internet video
- real broadband service to the home
Sure some will stick with cable/satellite that seems to have the attitude of The Office’s Michael Scott, “This is an environment of welcoming, and you should just get the hell outta here.”
Feel the move
Tellywood and the cable/satellite folks know that regardless of the content there is a viewing shift coming. They will be a part of it. They just can’t figure out what to do with all of the network schedulers that will be idled by the anytime viewers.
Downsizing doesn’t bother management too much. They’re used to cutting, shuffling, replacing at the blink of a viewer’s eyes. They just aren’t certain how to turn digital pennies into huge dollars. Effective monetization is a tricky job.
“I guess the atmosphere that I’ve tried to create here is that I’m a friend first and a boss second, and probably an entertainer third.” – Michael Scott, The Office (2005)
If you figure how to do that not just one show…one digital stream…one network…but the whole online content industry you’ll have lots of friends.
