My apologies for starting a post with a Barry Manilow lyric. There’s a similar snippet in West Side Story, but that one is more optimistic. “Something’s Comin’ Up” matches what I see – the video viewing world will be much different 10 years from now, but no one knows exactly how it will look. Whether it will be good or bad for us viewers will depend on a lot of factors, especially how fast your internet connection will be.
First comes an amazing story published by Advertising Age. According to report from Horizon Media, the median age for prime-time broadcast TV viewers has gone up by four years during the last four years. That means that there were only as many new, young viewers added as there were older viewers who died. The same median almost-47 year old in 2006 kept watching and became the median almost-51 year old today. (Props to Tod Sacerdoti for mentioning the report on his blog.)
Think about it. This means that very few young people care about broadcast TV. But they do care about the internet. FCC Chairman Julius Genachowski seems to be recognizing and anticipating this shift, finding wireless internet spectrum from mobile satellite services and setting his sights on taking a chunk away from broadcast TV. The broadcasters are fighting hard against this idea even though they’d get paid for relinquishing the space and that, well, they don’t actually own those pieces of spectrum in the first place.
Second, there’s Nielsen’s Law of Internet Bandwidth: A high-end user’s connection speed grows by 50% per year. It used to be crazy to think that every home user could get any channel he wanted, live or on demand, via IP. Now with ever-faster speeds and load-balancing, widely distributed content servers, that’s not so crazy. It used to be easy to say that satellite broadcasting offered the least expensive way to simultaneously reach hundreds of millions of live viewers. At some point, an IP-based delivery system will be cheaper. Already, PBS has announced it will shift some of its non-real-time program delivery from satellite to IP.
Third, more households are cutting back or dropping traditional pay-TV services. A report from Yankee Group said that one in eight would at least cut back in 2010. Add in anecdotal evidence of viewers who are switching to broadcast HDTV with dozens of channels in most markets. With an increasing minority of broadcast TV viewers, maybe it’s not so simple to predict the end of over-the-air TV.
(Or maybe we can anyway. At least one federal spectrum reallocation plan suggested free lifeline cable TV for soon-to-be-former OTA viewers. One TV repeater district servicing far-flung households in rural Nevada suggested switching everyone there to satellite pay-TV.)
So what does it all mean for FTA satellite? Leave a comment and tell me. Meanwhile, I’ve got one crazy prediction that I’ll save for my next post.