Death Of TV One Step Closer -- YouTube Signs Live Sports Broadcasting Deal [Silicon Alley Insider]
Henry Blodget of the Silicon Alley Insider becomes the latest journalist to declare that traditional television's death is imminent in the wake of a new online video content deal. In a post, Blodget indicates that the last reason anyone would want cable television - access to live sporting events - is now on its way out thanks to the fact that YouTube has inked a deal with the Indian Premier League to carry every cricket match from that country live streaming to the Internet.
Forget Monday Night Football on ESPN, it's free online cricket matches that will cause millions of Americans to decide that their sports viewing preferences have radically changed in light of the value proposition that this new agreement holds for them. I've seen many journalists and bloggers who have cheered the possibility of free video content online replacing traditional television, but Blodget's post is one of the more absurd.
Here's the rub. If live sports finds its way into people's homes by streaming it over the Internet, one should not assume it's going to be free. In fact, based on all of my experiences with the owners of sports rights, I'd bet the ranch that it won't be. So then, it simply becomes what is the best way to deliver those events so the rights owners can maximize the revenue potential. So far, I haven't found one who is seeking to move to an a-la-carte strategy. Just ask ESPN, Fox Sports, the NFL, MLB, and everyone else who owns sports rights and only allows distributors to carry their programming if it is packaged in a big tier of service with lots of other channels.
And then there is this specific example. I take nothing away from the game of cricket, as I'm sure it has many devoted followers, but I doubt cricket is the type of sporting event that Blodget claims he maintains a cable subscription to watch. And he's in good company with the vast majority of Americans who won't be cutting the cord anytime soon in favor of online cricket viewing.
Unfortunately for Blodget, Google and YouTube's deal with the Indian Premier League doesn't include viewing rights in the U.S. And, while there are paid subscription models for online sports video - like Major League Baseball's streaming service, the idea that the online platform could support a revenue model for free viewing of sporting events like NBA, NFL, NHL and NCAA games is a pipe dream at this time.
I love streaming video. It adds so many possibilities to the viewing options of consumers and it makes our highly efficient high-speed broadband networks even more attractive to consumers. But the existence of streaming video doesn't mean the imminent death of conventional television. When television appeared in people's homes, pundits declared it would be the death of radio. Sixty years later ... you know the story.
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