Online TV Services Maturing

Ever since my first triple digit cable bill, I have been closely watching online video services.  I just couldn't wrap my mind around the staggering cost of television service.  A few great experiments have been tried along the way, but nothing reallly kept the whole family happy without a price tag that seemed unreasonable.

A series of mega-corp vs. mega-corp spats ended up leaving us without some of our favorite shows on a reliable basis, which led us to finally switch to 100% online services for video.  We would include over the air network TV as well, but I'm sure our neighbors wouldn't be too keen on an outdoor antenna of the size required where we live.

Advantages of Traditional Services

The first and foremost advantage of traditional services is the familiar format in which they are delivered.  Any TV can accept that analog cable signal, and there is instant content available with the press of a power button.  In addition, the channel surfer will enjoy the ability to hop back and forth between channels, never missing a second of being entertained. 

Sports fans are tied to traditional providers more than other types of TV watchers.  Between league contracts with networks and the need to provide coverage of the smallest demand events (little league baseball, college golf, etc.) there really is no great option for those who primarily use their TV for sports.  The NHL lockout shows us just how much air-time is devoted to sporting events.  To fill the space as well as give fans their fix, ESPN3 will be airing Russian Kontinental Hockey League games until the NHL returns.

An additional advantage of traditional services is the existing (and continuing) relationship with their customers.  Switching to online video isn't going to completely free you from the need for a wire to the house.  You'll still need Internet of some sort, and mobile providers are still struggling with the technology required for high-speed Internet.  Many consumers faced with the choice of dealing with a single bill for everything, would much rather jump on the "bundle" rather than into a relationship with another company.

Disadvantages of Traditional Services

Those same sports fans that will find cable or satellite to be a necessity also have to deal with a few downsides.  Blackouts prevent many viewers from catching their favorite games, and several games are now being aired exclusively to certain providers.  (Thursday games on the NFL network being the most prominent example that comes to mind)

Every traditional service viewer must deal with either the high cost of cable, or the reliability problems of satellite services.  While throwing a garbage bag over the dish makes a big difference, it still doesn't completely solve the reception problem during inclement weather, which, if your family is anything like mine, is the time when the TV is most in demand.

Disadvantages of Online Video

The most prominent disadvantage faced by online video providers is the incomplete content libraries provided.  No single provider is able to give you the entire Zeitgeist, and the sum of their offerings will often miss a show that is a must-have in many households.  Careful inspection of libraries is required to determine which provider or providers to choose, but most families can attain all of their favorites through only one or two providers.

While the additional cost of set top boxes, computer capable television sets, or other means of streaming has traditionally been a large disadvantage, it is becoming less of a concern each day.  Network connectivity of some sort is becoming standard on anything with a screen, or anything that attaches to a screen.  Still, this does provide a barrier for entry for the consumer.  While many households will find that the cost of a Roku or other set top box will be absorbed in the first month without a cable TV bill, it is still money out of pocket.

Advantages of Online Video

The single greatest advantage of online video is cost.  Our family already subscribed to the $7.99 / month Netflix streaming service as a replacement for video rentals.  Once we added the Hulu+ service (also $7.99/month) for next day access to most current TV shows, we were looking at $15.98 each month for our viewing needs.  (This of course, in addition to Internet, which we would have needed anyways)

The convenience of watching what you want, when you want, where you want, has by far had the most impact on my life.  I know that I'm not going to have to remember to record my favorite shows, nor am I going to have to be home by a certain time to catch them.  If I find myself in a frustratingly long wait at the mechanic or doctors office, I can pop in some headphones and relieve some stress by catching up on a show or two on my phone. 

Certain video services (most notably Netflix) are completely commercial free.  Commercials are always an annoyance, but those online video services that force you to sit through them give you an interesting perspective.  Using a little more knowledge about your demographic, providers are able to target the commercials you see more accurately.  This provides them with more valuable ad time, which means less commercials per show. 

If there is an annoying downside to less commercials it is that you tend to see less variety in commercials.  I must be in the Toyota Prius demographic, because I've seen that commercial so many times I've got the song memorized.  Sometimes I feel like I am *the* guy they are trying to convince to buy a Prius.  I've heard the song so many times I've come up with alternate lyrics "Wierd Al Yankovich" style.  Before anybody asks, no, they aren't fit for public consumption.