When it comes to ABC, Bob Iger pretty much said that they’re looking to do something like authentication. You’ll have to have some way to show that you’re signed up with one of the large cable providers before you can watch their content on the web. They value their relationship with the cable providers.
Felicia Day says:
“To me, the cable box seems like Tower Records 10 years ago, or Borders just 2 years ago. Look at how music and books have shifted to digital, on-demand purchasing. Cable companies are the “brick and mortar” place for video, and that business is dying. People don’t have enough time for 140 channels, they have enough time for maybe 10 shows, that’s it. Why pay 140 bux a month to watch that many shows when you can buy them individually? Or stream The Wire on Netflix for 8 bux a month, because you missed it the first time? Or play a video game? Or just surf the net?
So my question is: What happens to all those shows when they fragment like that? Who is gonna pay to produce them? What is the future? (And “funded by viewers” model is not the answer, only 1% of people ever really contribute, and the up-front costs of producing video are WAY higher than making a record or a book, etc. Believe me, I understand this personally.)”
She asks valid questions as well; very good questions that no one has found the answer to and why we still have cable companies. I love her show, The Guild, but I’ve never directly contributed to it (which you can do via the show’s website). I pay Netflix which is how I watch the show. So what are the answers? I don’t know. I think the entertainment industry is slowly figuring it out, but I do think that anyone who tries to cling to the big cable companies is going to end up being the loser.