Archive for December, 2006
Posted December 21st, 2006 by Scott
An interesting experiment conducted over at Wired magazine, where the journalist:
“Cut the coax cable snaking into my HD-ready television, and for 30 days rely solely on legally available internet content to satisfy the video entertainment needs of my family of five”.
The article is US centric of course, but it is revealing of the existing business models that major media companies are using to distribute their product. TV shows available on I-Tunes are $2 a download (ouch), while movies are up around $10. While their is free content to be had on some of the major sites (CNN, NBC), the overwhelming impression is that getting access to traditional TV media on the Internet is expensive.
Why is this so?
If I turn on my TV and watch a program it is free (with commercials), but if I download it from I-Tunes it costs me $2?
While I could argue that it should be free (why should it matter how I choose to consume your product), if I have to pay, what happened to the micropayments scheme we were promised so many years ago? (Jet packs and hover cars anyone?)
Yet another example of traditional companies making a hash of business on the Internet. When confronted with the awesome possibilities of distributing content via the Internet for a much larger audience, who came up with the idea of taking a free product and:
- Charging for it
- Attaching DRM
- Preventing people from storing it on their hard drive (even though they have already bought it?)
How frustrating!
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