Online Television

MSN Money had a very good article today about online TV and how it can break the need for cable.

The only barrier I see right now with online TV breaking the dependency on cable is the ease of viewing it on a television. It isn't terribly difficult to use a computer as a media center, but the average user would be lost trying to toggle their display modes, isolate the proper cabling, etc. For me its not an issue (hell my monitor is HD and bigger than my TV) but for Joe Six Pack, who just bought that 40+ inch HDTV with his tax return, it isn't that easy. He just wants to be able to just turn the damn thing on and watch his NASCAR.

What we need... Microsoft needs to retool its Media Center software to tie directly into online services like Hulu and the major networks. A programming guide in the vein of the cable GUI would greatly ease the transition from cable to online. Granted it would be VERY difficult to get a system like this to work (online programming changes regularly) but a deal between Microsoft and Hulu would make it a much smoother process.

Think about how much cheaper it would be for networks if they didn't have to pay the fees to the cable/satellite companies. Also, think about the exposure smaller outlets could get by piggy-backing with online distribution. Hell the NHL could actually have a marketable product on their hands if they could cheaply distribute the games online using their core advertisers to supplement the cost. The NFL Network could broadcast to everyone WITHOUT Comcast intervening.

The down side: eventually we'd pay for it. Advertising dollars only go so far, and corporate greed is a far reaching disease. Hulu is free right now, but eventually their increased traffic and user base will spark a need to invest in new technologies, more employees, etc. Granted the odds are any fees would be pennies on the dollar when compared to an average cable bill, but the merit still stands.

Ultimately the world is moving online. It makes perfect sense for all forms of media to be deliverable via online distribution. The question is only how long will it take. My guess is that within the next 5 years you'll see nearly exactly what I've suggested: Microsoft providing online TV to Windows users.