Television now operates 24/7, the maximum allowed by the laws of science. And in an increasingly global and fragmented media marketplace, it is highly unlikely such time will be reduced. How then will consumers continue to change their viewing experiences? As academically interesting as the question is, for all segments of the industry, getting the answer right will separate winners from losers. Although the amount of TV fare currently streamed online remains small, it is growing fast. But what happens if the Internet competes more aggressively for television viewers? Will online advertising become more valuable to all concerned? For broadcast networks, online ads may present new revenue opportunities - even with smaller audiences online - given the ability to better target advertising and, thus, charge higher CPMs. Cable networks, on the other hand, may have a higher bar to clear. They have two revenue streams - advertising and subscription fees from carriers like MSOs, satellite companies and telcos. So the break-even point is greater. Adding to the uncertainty, however, is the challenge posed by "all you can eat" Internet access pricing. Since significant increases in streaming video will put a lot more stress on current bandwidth, networks may be looking at a reduction in revenues just as online costs for content distribution go up.
