Recent court rulings have upheld the rights of Hopper (Dish Network’s ad skipping tool) and Aereo (feeding broadcast TV channels to your home via internet) to continue their digital challenges to the broadcast TV business model, as recounted by David Carr in his July 29 Media Equation column. These upstart services threaten TV advertising and retransmission license fees, respectively, representing worrisome leaks in the basement of the broadcast TV business model. Studies on ad-skipping have shown its appeal. Time-Warner Cable exploited Aereo threat as a bargaining chip in its contentious carriage negotiation with CBS this summer. Though largely unknown to the public, you have to wonder how quickly these digital disruptions could catch on once consumers take notice.
The long and short: Will Richmond of VideoNuze comments on a Freewheel study that captures the impact of burgeoning online video: Video views of pure-play digital providers grew by 47% in Q1 2013 while TV network views declined by 8% over the year-earlier quarter.
Endearing digital mashup by John D. Boswell for PBS Digital Studios.