Will Tv Succumb to the Internet

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Summary The case study of “Will TV Succumb to the Internet” explains how the Internet has transformed how viewers watch television programs and other videos. There are now several online outlets in which viewers can watch whatever TV show/movie they desire. YouTube was one of the first online outlets by allowing users to provide video clips, and even entire TV shows, for anybody to watch. However, this was considered copyright infringement, and a 2008 lawsuit made it much more difficult to put clips on YouTube without proper authorization. Web sites offering streaming video of TV shows have since revolutionized the way in which viewers watch TV shows and movies. High-powered companies such as Hulu and Netflix have caused a number of U.S. households to get rid of their cable, satellite, or high-speed television services altogether. The number of U.S. households to follow this trend is predicted to double in the upcoming years. However, these companies providing online video-streaming have experienced growing pains regarding revenue. They have had to charge users a higher fee for their services because the main source of revenue, advertising, is not generating enough money to satisfy all of the content suppliers. Regarding advertising, there have also been complaints about the number of ads shown while viewing online TV shows. This could cause these unhappy customers to rebel and go back to subscribing to their basic cable services. Nonetheless, cable companies are feeling the impact of their customers canceling subscriptions for online video services. With technology continuously improving, Web TV and video sites could completely take over and put cable companies out of business. 1. What competitive forces have challenged the television industry? What problems have these forces created? The Internet is the main competitive force that has strongly challenged the

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