Entertainment disintermediation

August 18, 2009

FILE0005First of all, I don’t watch a lot of TV, I even owned a “Kill Your TV” t-shirt in the late 80’s.   But that was twenty years ago, and like many others in the “Great Recession” I am now paying some programming company $60 a month for 3000000 mostly useless stations and wondering “why?”

My personal $60 went for the last four years to a direct broadcast satellite network with annual revenues of $20.4 Billion.  Another smaller chunk went to NetFlix.

I mulled over the factors:  sheer channel overload, parental concerns about programming quality, and costs, and decided to make some changes:

Results:

  • The direct broadcast sat network didn’t let me go easy.  - $60
  • Netflix unchanged at +$12/month
  • Roku box – one time +$99 purchase
  • Digital Amplified Antenna –  one time +$20

The Roku + Netflix had to be one of my most gratifying consumer experiences in years. It allowed me to fully take advantage of the on-demand IP video options, streaming a library of thousands of movies and documentaries for the same $12 a month. Throw in the antenna for my HD TV and I can waste some valuable time watching the HD stations for early morning and late night TV news, for free and at better quality rates than DTV.

There are billions at stake, where will they flow as content is just another App?


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