2012年3月9日星期五

Why The Internet Will Not Kill TV?

If we are asked to choose three inventions that change our daily life, television must be on most people's list. Though it is said that we've already entered the internet era and most of us think that TV is now leaving us slowly from our daily life, data from a report said that internet does not kill TV till now and many internet company is going to enter the TV field. That is why many big internet companies want to make their own TV. Like the report said that Apple and Google will release their smart TV soon. It looks like that they all want to take a share from the TV customer groups and the huge advertise fee. We always think that with people lower their frequency of watching TV, the advertise resources from TV will go to that internet, such as Facebook, Google and Apple. This is according to the rule that Dollars is follows the eyes. However, the data does not support people's guess. Let us see a report from Bernstein.


First of all, we can see that although people are leaving the TV, the advertise fee is still rising.


Secondly, internet advertise cost is now increasing, but the spending from TV advertise is also higher than before and the increase of internet does not surpass the TV's. When other traditional media's advertise spending are decreasing seriously, but the decrease cost does not equal to increase of the internet.


So how does people spend their time? According the report that, people spend 2 billion hours per 3 months on Netflix. Does it mean that people shorten their time on TV? The answer is not. From the total hours that people spend on watching, people spend on TV is increasing. On the opposite, Netflix, Amazon and iTunes take the time away from people spend on DVD Movies. Of course, this is changing, especially when those internet big companies break the monopolization of the cable television. While this is a really difficult process, those big ones in cable television will not disappear in short time and they will still play a important role in people's daily life and advertise field.


Of course we should also see that, with the internet get into our daily life more and more, TV maybe not disappear anyway. However, it will not play the role that television in the past decades, which is the most important way people get news and take amusement on it. With the Google and Apple's join, the rule "Dollars will follow the eye" will still work. The money will also go to the television big ones' pocket. The TV field will still be the goal that big companies want to control. Internet will not hurt TV market, however, it will give it a second boom.

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