Web Merges with Television

Amazon.com, Netflix, Apple, Google, and Hulu are all competing to merge Internet based TV viewing and the traditional TV set. How will this affect cable and satellite TV subscription services and the price of TV shows on their own? Such a move could eventually make cable and satellite subscriptions obsolete and experts are concerned that this competition between web TV giants will lead to highly devalued television prices. As soon as Apple announced that many TV show rentals on iTunes would be reduced to 99 cents, Amazon.com responded by lowering the price to purchase many TV shows to 99 cents.


Many media companies are slow to put too much of their best content on the Internet for too little money. None want to be left behind as the Web merges with television, but they are also wary of encouraging a shift to Web-based viewing, which could lead consumers to cut off cable and satellite subscriptions. Especially with the addition of Internet-connected TVs, Blu-ray players, and Microsoft Corp.’s Xbox 360, all of which make it easy to view Internet content on a traditional television set.


This greatly impacts the industry because many companies are trying to determine what is the most profitable path. Even cable and satellite giants are taking notice. Comcast Corp. is considering purchasing NBCUniversal, a company well-established in the online TV realm, to establish a foothold in the rapidly evolving industry of Web TV. Both traditional cable/satellite services and the newer Web companies are asking the same questions. Should they release all TV shows immediately and charge higher prices for those that are the most recent? Should they stay away from releasing new content and instead focus on providing a cheap venue for older shows? Will the TV show industry take the same path as the music industry, trying to compete with software that makes free and illegal downloads as easy as purchasing on iTunes?