ABSTRACT

The pace of change in the digital distribution of video-based media has been so torrid that much of what I discussed in the first edition of this book is fully outdated. Cloud applications had not penetrated the mass market, tablets did not exist, the app ecosystem had just been introduced, social media was in its infancy, and cord-cutting was not part of the vernacular. What is startling about the delivery and consumption shift led by cloud-based infrastructure, over-the-top access, personalization of TV, and streaming aggregators vying to become new networks is that this new paradigm follows directly on the heels of a period that was itself considered revolutionary. Traditional networks and video outlets, still critical and relevant as the prior chapters have illustrated, are akin to boxers having withstood a first punch that scared them, and a second blow that dazed-the pending question is whether, in fact, the cumula - tive shocks will ultimately create a knockout. The old boxer, wobbly but wily, is still upright because content continues to be king, and the most compelling content is vertically integrated within the old distribution infrastructure; moreover, traditional distributors are increasingly finding ways to license and exploit their prized content via on-demand systems

and on-the-go outlets, using their leverage to turn would-be competitors into new revenue sources. The challenging question remains, though, whether we are approaching a tipping point when revenue from VOD access overtakes traditional sources, rather than the new channels of access being merely a new window to be carefully exploited and caged. If 2006-2008 was the period when the boxer climbed into the ring to defend his title, then I would argue the ensuing few years pushed him against the ropes; in the next several years, we will see that long-feared tipping point when the ropes come down and the digital distribution genie is no longer a pretender to the crown. The challenge to content owners, going back to Ulin’s Rule, is to balance the streams and impose enough window discipline that persistent VOD is not the only windowfor if it is, as discussed in Chapter 1 and throughout this book, then creators will see a continuing erosion of revenue, and the challenge of how to produce and finance premium content will become even more acute.