The Near-Death Experience of Linear Television

[Commentary] In 2008, when I argued the case for linear TV, I was peppered with skepticism from friends and critics alike, who thought my wild opinions recalled a time when those slow to adapt rebelled against the heretical notion that Earth actually revolved around the sun. Six years later, it turns out it not only is very much alive, but poised for more growth.

Cord cutting, despite all of the dire predictions by producers, programmers and CTOs alike, did not actually commence in earnest until 2013, when for the first time there was a net loss of cable subscribers. None of this is a repudiation of linear TV, however, but rather a response to programming bundles imposed by the operators and networks alike. Consumers are tired of paying up to $200 a month for five times more content than they actually consume.Linear, in my opinion, is here to stay. New upfront deals offered by streaming services such as Amazon for network content are mitigating some of the financial risks by creating a new guaranteed revenue stream, thereby lessening the impact of Nielsen ratings. Subscription video on demand services, in turn, rely heavily on the television networks for their promotional muscle, which gives the show new life after first airing. Consumers can catch-up or binge as they like, fueling the popularity of the show in real time. The end result will be digital détente -- peaceful “co-op-etition,” and the ultimate in choice for the consumer.

[Ron Quartararo is director, business development, communications, media and entertainment for Hitachi Data Systems]