Internet TV

The current stage in the evolution of the new medium of Internet TV reminds me of cable circa 1980, with a range of elements coalescing to produce something new, something very big. The signs are clear: (1) major content suppliers are piling on, (2) devices and systems are being introduced to enable viewing of Internet content on TVs in addition to PCs, (3) Internet TV aggregators are building audiences and devining ways to monetize their ever-increasing content, and (4) advertisers are spending an increasing share of their ad dollars on Internet TV sites.

Internet TV is a long way from matching, let alone replacing, the cornucopia of TV content delivered by multi-channel providers, whether through linear TV or VOD. But it is taking shape as another distribution channel for video content. It is a potentially significant competitive challenge for cable on multiple dimensions, but it also represents a terrific opportunity for major cable operators to extend their footprint as TV distributors. Given that there is no way to "beat" Internet TV, the best approach for cable may be to join in on the fun.

Ways to do this: Create niche websites. Acquire Internet TV aggregators that already have a foothold. Enhance MSO portals.