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...enough people buy into the system, it could change the equation that determines a hit. Forrester estimates, for example, that Desperate Housewives earns ABC about 45� in advertising per viewer per episode, but clears the network about triple that when sold through iTunes. So if you buy the show, you are literally three times as important as someone watching for free. If watching VOD became widespread enough, the business model of "free" TV would be a little more like HBO's--in which what counts is not getting a lot of people to watch your show but getting a relative...
Consider Zucker's example, The Office. Its ratings are poor, but its audience is rich. Its viewer incomes are among the highest of any network show. If its viewers are loyal, flush and tech-savvy enough that they'll pay not to miss episodes--or to watch them on their own schedule--the revenue could help keep such a marginal but critically praised show on the air. With new distribution channels, a production company could even try to sell a canceled cult show directly to the public. Nothing like this will happen immediately. It took DVD years to take...
...including GoTV. Fox has created one-minute cell-phone offshoots of 24, and a mini-spin-off of Lost is forthcoming. Time Warner (TIME's parent company) will offer computer downloads of past Warner Bros. series like Kung Fu through AOL (free but with ads), while Nickelodeon and Cartoon Network will sell shows for $2.99 for a media player made by toy company Hasbro. The National Academy of Television Arts and Sciences is even creating an Emmy for original video on nontraditional platforms such as mobile phones and computers...
When TV shows become something you order at whim from a cable box, or take on a plane, or carry in your pocket, what is TV? What is a network? After all, the networks, with their vast mid-century distribution systems, are in essence simply conduits for delivering programming from producers to viewers. Could the nets end up making their brands irrelevant? McPherson doubts it. "Whenever you're looking at airing your content in new places, you have to first consider the mother ship, which is the network," he says. Yes, but a mother ship can be part...
...would not be forced to shut down. The wrench that the Court threw into the works in the Grokster case was to say that a simple doctrine of “substantial noninfringing use” was not sufficient. If, as the music industry argued, a peer-to-peer network was encouraging (or, in the language of the decision, “inducing”) its users to commit copyright infringement, the Court held that the network could be held liable for the infringement.What exactly ‘inducing’ means is not at all clear, and this...