

In Piracy Debate, Trying to Decide if Sky is Falling - carbocation
http://www.nytimes.com/2012/02/09/technology/in-piracy-debate-deciding-if-the-sky-is-falling.html

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zowens1190
"Piracy has put the impetus on media companies to more quickly strike deals to
make television and movies available on the Web legitimately. In 2007, Erik
Flannigan, now the executive vice president of digital media at Viacom
Entertainment Group, pulled up the Google search page on a giant screen at
Viacom’s Times Square headquarters. He typed in “South Park” and took senior
executives on a tour of Web sites offering pirated episodes.

Today, Comedy Central makes every episode of “South Park,” “The Daily Show”
and “The Colbert Report” available free online. The efforts, Mr. Flannigan
said, put a big dent in piracy. As for the television industry as a whole, Mr.
Flannigan said: “You might not like the windows, or that shows go up and come
down, but it’s a far cry from where we were.”

Still, Comedy Central shows do not make billions in syndication or in DVD
sales like some TV series. The industry has been reluctant to make available
shows like CBS’s “The Big Bang Theory,” which sold for $2 million an episode
to Time Warner’s TBS and Fox. That makes piracy a tempting option.

“If they don’t make content available where consumers are, they’re just
shooting themselves in the foot,” said Ron Conway, a Silicon Valley investor
and the head of the SV Angel investment fund."

CBS' concerns stem from the fact that if the web delegitimizes a television
channel's status as the go-to source for viewers, then the whole process of
the concentrated industry's livelihood, one which they have established as
essential to stay afloat, let alone profit, is irreparably diminished.

If advertisers do not think the money they paid in the past is what they need
to pay TBS now, given other advert opportunities, they will to want pay less
for commercials, which support TBS' model, and would bungle up their plans.
(TV Industry would go off of Nielsen ratings, which were strong estimated
guesses of # of ppl/demos tuning into particular programming; this information
provided Advertisers an idea of where they should their energies and money,
for maximum appeal.)

TBS will want to pay less because they won't rake in as much from commercials,
pissing CBS off since they rely upon $2 mil/episode syndication deals of their
most popular properties to subsist and survive.

And CBS won't want to spend as much on their properties (production budgets,
salaries, etc) because they will be uncertain if it will even pay off. We are
past the days of Must-See TV Thursday and 30 Million Viewers for 30 mins of
Friends. Sorry Burbank, they are not coming back. \---- At least Comedy
Central recognizes their new competition in distribution and knew to bite the
proverbial bullet and stream for free what is going to be out there for free,
no matter what. Because of that, they build up brand loyalty (less and less of
an influence on TV, more and more of one online) and can make money
advertising -- centralizing properties, distributing, and payoff -- within the
company. Establish an optional low-cost subscription fee for complete access
to their library, and enough people will pay for it to justify its creation,
too!

I am 21 years old, and hardly anyone my age watches TV. They WILL subscribe to
Hulu, and they WILL subscribe to Netflix -- but look at the volume of content,
and the amount of control the viewer has with those services! The television
is a box of content that asks for passivity from the viewer, especially in
choice availability. That does NOT work in The Game anymore.

Those that look to "Remember When" and long for systems of the past are
individuals who are losing to progress, because they did not -- or COULD not,
in much of Hollywood's case -- look past their at-present business models for
more innovative means necessary for industry survival.

Now is the opportunity for independents all over to seize the unprecedented
access to the consumer they now have and make a living doing it.

People do not care if Paramount Pictures made a movie or Uncle Regis' buddy
two towns over did -- they just need it offered to them, they want it when
they want it, and above all, they want it to be worth their time. Anybody can
do that, and anybody can make money off of that.

\--stepping off the soapbox--

