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forenoon filings

shiny, oh so shiny

a broadcasting shake-up looming?

Now that the dust has settled on the big announcements from Apple yesterday - regarding the media centre reinvention of the iMac; the video enabled iPod; and the new Front Row/Apple remote combo - it has given us time to ponder how being able to buy video online through the iTunes Music Store will change traditional broadcasting.

Viewers and broadcasters alike have developed a relationship where program content is broadcast to the viewer and it is up to the viewer to choose what they wish to watch. This model often gives rise to high fees for subscribing to or receiving a particular channel (a hot topic in the UK at the moment).

However, being able to individually select programmes for direct download will mean this delivery model will need to change.

Maybe you liked two or three episodes of a particular series? In the current broadcast model, this means you watch or record those particular episodes when it is broadcast or gain access to the DVD boxset (renting or buying). In both cases a large amount of program content is discarded and remains unviewed from that viewer’s perspective; yet you are still paying the subscription for that channel or have paid the price for the full DVD series.

Serving program content digitally means that this waste is reduced, and the cost to the viewer is reduced. Viewers would only watch, receive and (more importantly) pay for the content they want – probably not such a driving reason for many broadcasters to champion this idea! It is no secret that Apple is in talks with many leading broadcasters (most notably the BBC in the UK), so the amount of programme content will only grow in future months.

But how will this affect the monthly or annual subscription or license fees that many viewers pay for now currently? Many established channels will need to realise that the traditional broadcast model cannot be sustained in the coming years, once digital distribution becomes more widespread (which is becoming more widespread with digital TV services).

This counts as another step towards a model of empowering viewers to select the content they wish to receive and pay for. Against the current model of paying a fixed fee for channels which in reality you only consume a tiny percentage of – it is a step that will be very welcome.
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