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Old 03-12-2019, 09:02   #1192
OLD BOY
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Re: Linear is old tech - on demand is the future

Quote:
Originally Posted by jfman View Post
Who knows, it could be 10% by 2035. Linear will still be viable due to the low cost of broadcasting. Just look at the number of countries with less than 10% of the population of the UK that have independent TV channels. As with all projections the low hanging fruit is the easiest to achieve. The final ten per cent will be much harder.

I don’t expect it to be as low as 10%, but linear is still viable at that level. If you are Sky or anyone else paying hundreds of millions in rights the actual broadcast (over and above the rest of delivery methods you are using anyway) is relative pennies. As channels close the 10% becomes quite a captive audience.

DTT was viable even in the ITV digital days (the pay platform obviously wasn’t) when it was a gateway to a couple of million homes.
That was before we even had Netflix!

As for your 10%, you won't get much in the way of quality viewing on that small audience! Just a few short years ago ITV nearly went under because there was insufficient advertising to support the cost of programming.

It should be clear to you, particularly with your outstanding economics expertise that is, we understand, second to none, that 10% of the audience is not going to generate the same amount of revenue from advertising. Something has to give, and why, when the system changes to IPTV, would the broadcasters would want to duplicate a system which provides an unsatisfactory plethora of channels when the content can be packaged into all-embracing streaming services?
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