TV Everywhere and the end of free TV

The end of free TV is looking imminent. The pay TV providers are already laying the groundwork for their response to disintermediation from free online TV sites, but the best way to turn online eyeballs into profit is still a topic up for discussion. As TV Everywhere ramps up, the question becomes, is there even money to be made from online video? According to The Diffusion Group analyst Colin Dixon, the answer depends on the execution. TV Everywhere - as a concept - is very popular with consumers. TDG surveyed consumers on the notion of getting TV content on the PC and found that about 46% of broadband heads of households were very interested in the service, and 30% saw enough value to pay upwards of $10 for it. The problem is, Dixon said, that pay TV providers are not going to be able to deliver on this concept of program-rich TV Everywhere. "They really can't start charging for this until they can deliver on that promise," Dixon said. "Consumers will be very disappointed when they get the service and they can't get ESPN, ABC, Disney or other programs." The success of any business model will rest on the operators' ability to authenticate their users.