Henry Blodget has an interesting post on something that seems so obvious to me that it’s hardly arguable: the impending collapse of the business model for television networks. After a lengthy exposition, outlining the collapse of the print newspaper business model (check out the astounding graph of real newspaper advertising revenue), he makes the following points:
- “Networks” are completely meaningless.
- The majority of what we pay our cable company is wasted.
- We rarely watch TV ads, and when we do, we’re usually doing something else at the same time–like typing.
- The vast majority of money TV advertisers spend to reach our household (~$750 a year, ~$60/month) is wasted,
- The vast majority of money we pay our cable company for live TV (~$1,200 a year / ~$100/month) is wasted,
Virtually the only network television program I go out of my way to watch these days is NCIS and I think that’s on twilight cruise at this point. Most of what I watch is on Netflix (I would watch more on Hulu if Hulu weren’t such a mess).
The brightest new development in my television-watching habits is that I’m now a subscriber to Acorn TV. Every month I get a nice selection of British TV I can stream via my Roku directly to my TV. That’s the direction I’d really like to see television move in: à la carte