TV & Radio

Entertainment

Watching TV on web is disrupting cable, broadcast worlds

 

New technologies that give viewers more say over what they watch and when is making traditional providers of TV entertainment nervous.

 

DISH Network President and CEO Joe Clayton and DISH Network's mascot Hopper arrive at a press event at the Mandalay Bay Convention Center for the 2013 International CES on January 7, 2013 in Las Vegas, Nevada.
DISH Network President and CEO Joe Clayton and DISH Network's mascot Hopper arrive at a press event at the Mandalay Bay Convention Center for the 2013 International CES on January 7, 2013 in Las Vegas, Nevada.
David Becker / Getty Images

ggarvin@MiamiHerald.com

Veteran programmer Rob Barnett recently attended a breakfast meeting of television executives where the talk turned, as it almost always does these days, to “disruption,” the industry buzzword for the way new technology is upsetting the TV applecart. From somewhere down the table, he heard a question: “Has anybody here cut the cord?” — that is, dropped cable service in favor of just watching TV through the Internet? Barnett shrugged and raised his hand. “Mine was the only one,” he recalls. “But when it went up, I saw beads of sweat break out on the foreheads of some of the guys across the table.”

When Barnett and 5,000 or so others gather Monday for the National Association of Television Program Executives (NATPE) convention at the Fontainebleau Hotel on Miami Beach, there will be plenty of sweaty foreheads, some acquisitive smiles and — perhaps most numerous — blank looks of confusion. Not since cable turned the old three-channel TV universe on its head in the late 1970s has the industry been in such a state of disoriented befuddlement.

New technologies that give viewers more say in what they watch, where they watch and how much they pay for it are great for consumers. But they’re inducing a collective nervous breakdown among industry executives, who have to figure out new ways to make money in a business facing serious threats to its traditional sources of revenue — advertising and cable-TV subscriptions.

“Technology this year has really disrupted the industry, even upended it,” says Chris Sloane, president of Miami’s 2C Media production company. “We’ve talked about this coming, but the future is now and not always for the good.”

The industry last year was blindsided by everything from a leap in the use of TiVo and other digital video-recording devices that pushed Nielsen ratings down as much as 50 percent to a new device called the Hopper that allows viewers to instantly zap by commercials.

But the biggest tremors came from the Internet, which is threatening to remake television as thoroughly as it already has the newspaper and music industries, by letting viewers bypass cable to watch shows online.

• There was explosive growth in what the industry calls over-the-top or OTT, little boxes that sell for as little as $50 or so and allow viewers access to hundreds of streaming-video Internet television channels from their TVs. Apple and Roku, who make the most popular OTT players, have sold about five million apiece. But other companies like Amazon, Google and Western Electric are pushing into the market, and industry analysts say Intel, the world’s largest semi-conductor chip manufacturer, is also poised to leap into the OTT business.

Another major OTT force: video-game consoles like Xbox and PlayStation, which can also be used to watch streaming Internet video. “They may be doing more business than anybody,” says Andy Tarzon, founding partner of the media research company TDG. “Xbox is the leading viewer for Netflix content.” It will, soon enough, have its own content; parent company Microsoft late last year hired senior CBS programming executive Nancy Tellem, who helped develop Friends and ER, to direct an on-line TV operation.

• The use of programming services that deliver television program via the Internet is mushrooming, with Netflix, YouTube, Amazon and other big names — even Walmart — setting up or expanding operations. “More than anything, that’s gotten everybody’s attention,” says Terence Gray, a longtime network producer who now runs the New York Television Festival. “When you see YouTube’s $100 million investment in programming, or what Amazon’s studios did last year, or Microsoft hiring Nancy Tellem, this is no longer a conversation. This is being done.”

Read more TV & Radio stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category