Thursday, March 4, 2010

Changing Content and Distribution Roles for TV

TV content is still differentiated and, therefore, can generate rents for producers. Distribution (via cable TV systems) has traditionally been differentiated and can garner rents too. Traditionally, there have been entry barriers to distribution too. But how much has the Internet changed all that?

Viacom's pulling The Daily Show and The Colbert Report from Hulu appears to be over how to split the ad revenue. Many Content producers had partially vertically integrated into distribution by offering shows on their own websites. Hulu was hoping to pull this disparate content together to become a one stop outlet for high quality video. But just how much value is created in doing so? Are there barriers to the emergence of alternative aggregators?

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