July 28, 2011

Do Not Adjust Your Set

New technology inevitably leaves casualties. The DVD usurped the video tape, just as the CD laid waste to the LP record and the wheel surpassed dragging things. One of the 20th century’s greatest technologies, television, is threatened by the internet – the other great technological innovation of the 20th century. Will people put up with ever-lengthening commercial breaks and strict programming times when they know that they can get what they want usually ad-free and able to be watched at their convenience? The advent of the DVR has already changed behaviour in regards to allowing people to watch shows when they want to. The internet can take this idea a step further, allowing the download of whole seasons of television shows, usually illegally. It is possible that in the future we will see the current programming model overhauled and commercial television as we know it might plausibly cease to exist.

But does commercial television have to be at odds with the internet? TV networks have already wised up to a lot of the digital age trends. News and current affairs programs in particular work well with input from social media sites like Twitter and Facebook, and it is common for TV shows to advertise their Facebook or Twitter accounts and encourage users to give instantaneous feedback on the show they are watching. This direct feedback can then be used to further determine target audiences and content, thereby creating better programming—which benefits the viewer— and more directed advertising, which benefits the network. For example, if a particular news program gets an influx of ‘follows’ or ‘likes’ from predominantly single urban women, then they can tailor their advertising accordingly and reap the benefits. Such information has been available to TV networks in the past, but never at such a rapid rate and arguably with less information than a Facebook or Twitter profile can provide.

As of this writing, commercial television is still going strong. It is a worldwide industry that has a firm grip on billions of dollars of advertising revenue and still has enough cultural currency to infiltrate pop culture.  But behaviour is changing. With a lot of television shows now available online – both legally and illegally – waiting a whole week to catch an episode of your favourite show can become taxing. The problem is exacerbated if you live outside the region where the program is produced; American television can take at least six months to reach Australian shores, if not longer. By the time you are watching the ‘latest episode’ of your favourite American drama in Australia the next season is already being shown in the States. It’s unsurprising then that people turn to downloading shows in order to get their fix rather than depend on the often unreliable network programming.

I’m basing a lot of my observations of TV watching behaviour on myself and my friends, which is a small sample size to say the least. But I think the assumption can be made that as members of Generation Y we are much more susceptible to downloading our favourite shows illegally rather than watch them on commercial television. The legality and implications of such behaviour is a tricky issue, and this post doesn’t intend to delve into the morality of pirated internet content. It can’t be ignored, however, that such behaviour exists, and especially that for many people of Generation Y it is generally seen as acceptable.

However, there is still a sizeable market of the older generations who might not do the same and therefore keeps the current model of network television—with its pre-determined programming times and set commercial breaks—viable. The most watched shows in Australia are those which present family situations and domestic life (think Masterchef, The Block, Home and Away, etc.) and therefore are relatable to a large percentage of the population, and not just 20-something students with laptops and University bandwidth at their disposal.

Furthermore, the current model of legal internet programming offered by the networks can be confusing, and at times just as limited as conventional programming. A myriad of ‘online television’ options provided by commercial networks exist, but these range from ‘catch-up’ services of already aired content (usually available only for a certain time), or ‘live streaming’ content which means that viewers still adhere to conventional programming schedules. If you want the liberty of being able to legally watch whole episodes of previous seasons whenever you want, expect to pay for it. And this money generally goes right back into the pockets of the networks. The Hulu service in the United States, which streams shows from ABC, NBC and FOX, pays 50 to 70 percent of revenue generated (primarily from advertising) back to the networks. Don’t expect this sort of arrangement to change any time in the near future. Naturally, television networks want to create a profit, that’s why they have to safeguard their productions and ensure to the best of their ability that they don’t lose money due to piracy.

The relative success of services such as Hulu demonstrates that a market does exist for people who want to watch TV online and pay for it. But how long will that market last? For while there still exists generations who have not been exposed to illegally downloading television shows the reality is that in the future all generations will have lived in a time when such an option has always been available. The technology exists for people to create pirated television shows – and unlike television networks, pirates do not charge for their services because they don’t stand to lose money from doing so. It is reasonable to assume that some pirates believe that they are doing a public good – a modern day Robin Hood, if you will, by taking content from the rich and providing it to the poor.

As mentioned previously, I don’t want to get into the rights and wrongs of online piracy. What I am interested in, however, is the direction that television will take in the future. A pertinent comparison to make would be the music industry, which has been threatened by the rise of the internet and peer to peer sites, and has accordingly had to change its mode of operation, with large stores like iTunes perhaps providing the musical equivalent of a service like Hulu.

So what happens when our society is made up solely of those people who know how (or know somebody who knows a guy who knows how) to obtain content for free? Will illegally downloading television content in its entirety become so common that TV networks are forced to concede defeat? Or will there always be a section of society who shuns online piracy and instead relies on the services that the commercial networks provide? Perhaps we could see an end to conventional television programming as networks no longer have the finances to fund new productions. We might forever be stuck watching re-runs of Two and a Half-Men, while wistfully remembering the good old days where we had access to new television shows, even if they did arrive six months late.

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