Tuesday, May 3, 2011

The End of TV

We can see the end of TV coming down the road. It will soon be a relic of the past (more like an 8-track tape than a typewriter or turntable). I'm not saying that people will stop watching movies or "TV" shows, rather that they will not be watching these shows on a dumb device.

The age of wall-sized screens with background scenery, art work, and video phones where you see your friends, in their living rooms, sitting on their sofa drinking a glass wine while they see you in your living room may not be here yet but we have the first real indication that that day is coming.

Nielsen shows a decline in the percentage of homes with TVs.

The latest data from the company, which takes TV set ownership into account when it calculates ratings, shows that 96.7 percent of U.S. homes own a TV set, down from 98.9 percent as of its previous count. There are now 114.7 million TV homes, compared to 115.9 million, Nielsen estimates as it gears up for the 2012 TV season.

Nielsen ascribes a portion of this to increased poverty and the other to a transition to digital. "Nielsen did not detail what proportion of the decline in homes with TV sets can be attributed to each of these reasons."

I see this as a beginning of a trend that will very soon shake the TV/Movie industry to its core. The solution is clear but they don't see it. It's the same as with the newspaper and book industry. Subscribers pay a fee to access ALL content and the funds get allocated according to eyeballs. We know all the rants-and-raves against it but the ranting and raving is coming from the segment of the industry which is dying. The solution is linking data producers with consumers as quickly and easily as possible. The payment to market makers will come from the data producers who chose to higher the advertisers, marketers or from investors who have "invested" in the future performance of data producers.

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