Unlike newspapers and the music industry, which saw their businesses sink with the rise of the internet, change has come gradually (for television). So far the TV industry has been a story of powerful and rich characters intent on keeping things just as they are. Network-owners and pay-television distributors made a pact not to sell each other out, and worked to preserve a business that has been extremely lucrative for all of them.
Advertisers and analysts have started to use the word “video” instead of “television”, because they consider online video an increasingly important part of their ad spending. The doomsaying may be premature. Viewing habits have changed, especially among the young, who watch more online video and time-shifted television, and often prefer to stare at a tablet than at a TV. But Americans continue to watch a remarkable amount of TV the old-fashioned way: around four-and-a-half hours a day, on average.
Many younger people will never shell out for traditional pay-television but advertisers have few alternatives to reach big audiences besides television, so for now have stuck with the medium in spite of flagging ratings. That should give TV bosses a bit of comfort for the upcoming season but they would do well not to lose sight of the wider narrative arc.
Read more in the Economist
