On-demand is the next TiVo

TiVo revolutionized the way we watch television, allowing us to record, pause and rewind live TV broadcasts and even skip commercial content. TiVo is second nature to us now; in fact, it’s even become a verb.

To the networks and advertisers, it posed a slight challenge to not only prime-time TV — by allowing users to watch content on their schedule — but also commercials. If users could record a program and watch it whenever they chose, what would happen to prime-time TV and advertising?

But in every way TiVo has changed our lives, and commercials, On-Demand TV is set to overshadow it completely. And one day, become the main source of TV entertainment.

On-Demand refers to content that’s available in a digitally recorded format like videos on Netflix, Hulu Plus or other streaming services; pay cable services like Time Warner On-Demand or Comcast On-Demand; or premium cable like HBO GO and Showtime On-Demand. Right now, the On-Demand offerings from cable companies are a bonus offered with a pay-TV subscription. Others feature On-Demand movies that cost as much as $6 per rental.

What I’m suggesting is that, in the near future, our television content will be built around On-Demand offerings. There will still be live TV, however it will be delivered through the Internet. A delivery method referred to as IPTV or Internet Protocol TV. Comcast is already testing IPTV at MIT.

On-Demand puts the entire TV experience — Movies, News, Sports, TV shows — on the user’s schedule, not the networks. For the majority of you still enjoying pay-TV, on the network’s schedule, think about how TiVo has changed our lives. Can you imagine TV without TiVO? Ten years from now On-Demand will have the same effect, only greater.

To me — now more than one year into my cable-cutting lifestyle — On-Demand TV is second-nature. When I want to watch a particular show, I watch the show, whether it’s 7pm, 7:20pm or 2am. The Colbert Report; Saturday Night Live; Ramsay’s Kitchen Nightmares; Lie to Me; 30 Rock; Comedy Central; Weeds; MasterChef; Mad Men; The Office; SportsCenter; even NBC News, CBS, ABC, or older shows like Arrested Development, a new obsession of mine even though the show concluded in 2006. On-Demand increases the shelf-life of television, therefore increasing the benefit to advertisers.

With On-Demand, users don’t have to wait for it to be on. It’s always on. And waiting.

I’m so accustomed to On-Demand that when I travel, I bring my Roku with me. The last two weeks I’ve been out of town. I’m staying at a Residence Inn by Marriott, equipped with everything I’d need for my three-week stay: refrigerator, oven, stove, microwave, flat-screen HDTV including HBO, ESPN and more. Everything, that is, but my On-Demand TV content.

I hooked up my Roku and rarely flipped on pay-TV, even with premium cable like HBO included. Below is a photo of my Roku XD, which I bought at Best Buy for $79.99. Roku is completely subscription free and offers Internet apps including Netflix; Hulu Plus; Amazon Instant Video; Pandora; CNet; Blip.tv; Break.com; Crackle; Facebook Photos; FlickrNASA; Revision3; NBA Game Time; MLB.tv; NHL Game Center; and Roku Newscaster, a Channel featuring news from all the major news outlets and more: Fox News, ABC, CBS, NBC, CNN, PBS, Aljazeera, NASA, CNet, Current TV, ESPN, C-Span, NPR, PRI and BBC. For Netflix, Hulu Plus and Amazon Instant Video a subscription to each is required. For more on Roku, read my in-depth review here.

Prime Time? What Prime Time? There’s no more Prime Time TV with On-Demand. Prime Time is up to the viewer.

What that also means for both viewers and networks — in addition to advertisers — is that a viewer can join the show at any time and catch up immediately via previous seasons On-Demand.

Viewership, and TV ratings, become more like a magazine, with a longer shelf-life. Not only for the television content but advertising as well. As I mentioned, I’m watching Arrested Development, which first aired in 2003 and ended in 2006. I was able to start with Season 1, episode 1.

With Hulu Plus — a great model for On-Demand TV — advertising is incorporated into each program — usually two ads per commercial break totaling about 60 seconds. They’re unable to be skipped; but actually, I wouldn’t anyway. The break is actually nice. On-Demand has changed the way I view TV and commercials. And will soon change TV all together.

The biggest fear of cable and TV networks today is the broadcast to on-demand delay. Cable companies and networks are attempting to increase the time it takes from broadcast until it becomes available on-demand for Netflix, Hulu or any other IPTV service. Fox announced last week that it was limiting the next-day streaming of content on Fox.com and Hulu.com in an attempt to curb the adoption of On-Demand streaming.

The networks can fight all they want. Their efforts are only delaying the inevitable.


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