Local TV Could Go the Way of Newspapers
Hugh Pickens writes "Alan D. Mutter writes on his 'Reflections of a Newsosaur' blog that the economics of local broadcasting may begin to unravel as dramatically in the next five years as they did for newspapers in the last five years, due to the unparalleled consumer choice made possible by a growing mass of (mostly free) content on the Internet. 'Once it becomes as easy and satisfying to view a YouTube video on your 50-inch television as it is to watch "Two and a Half Men," audiences will fragment to the point that local broadcasters will not be able to attract large quantities of viewers for a particular program,' writes Mutter. The economics of cable TV programming already are geared to serving small but targeted niches, but as audiences shatter, those options won't be available to local broadcasters, who will be deprived of the vast reach that enabled the high ad rates and enviable profits long associated with their businesses. Although barely 8% of US households had access to IPTV in 2009, this technology is likely to be available to some 20% of the more than 100 million homes subscribing to pay-television services in 2014, according to senior analyst Lee Ratliff of iSuppli, a private market research company. 'We already have gotten a hint of what the future could hold. Acting to trim spending during the recession, many local stations cut back their news staffs, resulting in a decline in the caliber and depth of their coverage,' writes Mutter."
Whether or not a two hour "Who's the Boss" block in the evenings is worth anything is fully up for debate, but local news channels fulfill a niche that the crush of 24/7 news channels doesn't touch. I want local weather, local street closings, local politics, local crime, local sports. In the hours right about dinner I'd guess that the ratings of local channels rate higher than cable news. How they fill the rest of their schedule, I have no idea.
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Local TV may be free over the Air, but it really works best in cities and suburbs. Regardless, many people get the local channels through cable anyway.
What I see happening generally with TV, is a move towards everything streaming over the internet.
The idea beingyou pay for a service, and it gives you access to on-demand streaming of the entire back-catalog of most prime time TV shows, and other programs that largely follow the same format. Most regular TV shows would be watched in this fashion. On the air date they just appear in the list of streamable programming.
Other programs would support live streams. For example most news programs would have live streams, as would the Weather Channel, sporting events, etc. Those that make sense to also have available on-demand, would be available that way after the live stream is concluded.
Under such a system there would be no such thing as local programming. All sporting events would be national, (although pro sports may insist on black-out regions), and even local news programs would be available nationally, since it would actually be simpler to allow that, and really not add any cost.
Now I recognize that this if it ever happens will take a while. It requires substantial Internet infrastructure upgrades, requires near universal broadband, and it would be opposed by local stations (who would do little besides create the local news broadcasts), the networks (the service would largely replace the networks), producers (thing will change the way funding works, and would definitely really hurt the sales of box sets).
Never the less, we are already gradually heading in this direction, so it is still possible, especially if the networks chose to co-operate, perhaps creating this service as a joint venture among the Big Three and the Little One.
Besides it is really the only chance the Television industry has, since there are already numerous unauthorized TV show streaming sites popping up, and they are far more convenient than tuning in at broadcast time, or even setting up a DVR to tape the shows. All those sites are missing is set-top box support.
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Acting to trim spending during the recession, many local stations cut back their news staffs, resulting in a decline in the caliber and depth of their coverage
That's odd, the caliber and depth of news coverage seem exactly the same as before.
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- - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.