IBM has released a report called "The end of television as we know it". The report worries that, as vieweship for traditional television declines, advertizing revenue for traditional broadcasters will also decline. As content is released directly to audiences online, broadcasters will no longer be the middle-men between (American) content producers and (Canadian) audiences. Canadian broadcasters would therefore no longer be able to sell Canadian television ads inserted over American programming. This would, the report says, threaten the pool of funds available for creating Canadian content and local news.
The Canadian Association of Broadcasters, in response to the report, calls for regulation of new media and continuation of Canadian content requirements.
The European Commission has warned member states against exempting traditional broadcasters from regulation while they set up new media shops. Apparently Deutsche Telekom in Germany got an exemption while it set up a high-speed Internet network. (see today's Financial Times)
Does the decline of the traditional broadcast model really mean the end of local news? How much can other forms of communication networks compensate for the end of local news in smaller cities?
Would this really be the end of television commercials? If so, I think it's good news.
If traditional broadcasters are encouraged to develop online media, what kinds of opportunities will be lost while they prop up old profitable business models at the same time?
IBM Report Summary: "The end of television as we know it": http://www-1.ibm.com/services/us/index.wss/ibvstudy/imc/a1023172?cntxt=a1005266
Feb 9 2006: I have received a hardcopy of the report from IBM. If anybody wants to borrow it just let me know. It's 24 pages.
Today's G&M article on the IBM report: http://www.theglobeandmail.com/servlet/story/RTGAM.20060127.wxrtv27/BNStory/Business/
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