For the past decade or so, network TV has been struggling to deal with the realities of the Internet as an entertainment and multimedia outlet. Recently, the situation has become critical, and many pundits are saying that network television is a dying medium, soon to be replaced by a seemingly unlimited amount of entertainment choices online.
New studies show that more and more people are watching TV episodes and films online, and the networks are even losing viewers to online video sites such as YouTube and Metacafé. In response to this, TV executives are beginning to look at the Internet as not only an advertising medium, but a method of distributing entertainment content.
A good example of this is the new CBS series “Big Bang Theory.” CBS took the unusual step of debuting the first episode of the sitcom online in its entirety, BEFORE it appeared on network television. The experiment paid off in the case of “Big Bang Theory,” racking up 90,000 online views, and over nine million viewers when it eventually debuted on network TV last September.
Big Bang theory, a comedy about two physics geeks and a sexy girl next door, was tailormade for this type of experiment, as the show appeals to a younger, tech saavy demographic. But CBS isn’t the only network experimenting with online content. Both ABC and NBC are also taking a chance by releasing selected episodes of their more popular shows online.
Networks are also discovering that online content delivery is a great way to increase their advertising revenue. Over the past year, online advertising revenue for all three of the big broadcast networks has nearly doubled, and advertisers are finding out that their money may be better spent online than on traditional broadcast TV commercials.
One reason for this perception is because the Internet is by nature interactive. If the viewer becomes interested in a product being advertised during an online TV episode, they can immediately click on a link to take them to a web site providing more information about the product. In many cases, they can even buy the product online instantly and return to their TV episode without missing a beat.
ABC has discovered that streaming episodes of Lost or Desperate Housewives online is creating significant advertising revenue, as product manufacturers are hungry for the type of mostly-well educated and Internet savvy viewers who would watch these programs online.
With online ad revenues on the increase, it is clear that all the major networks will continue to experiment with online episodes, further blurring the line between television and the Internet.
