I think VOD will change the TV Industry in a good way. Ultimately companies want to provide the best service they can to their customers. Every company would love to be able to provide their customers with everything they desire. That way the customer will spend all their money with one company.
TV companies and especially cable providers are going to have to look at the way they do business. If one company can provide regular cable programming and an archive of free movies for around the same price as a competing company, why wouldn't someone sign up with them.
I think that with the development of VOD, there's alot of money to be made. But, there's also alot of money to be lost. The production companies that own the rights to the movies can contract with certain cable companies allowing them to archive and show their movies to their customers. Obviously this technology and way of business will hurt the Hollywood Videos of the world. Why would someone go to the video store and rent a movie that's probably scratched, when for the same price they can simply navigate through their cable companies menu and have the charges added to the bill. Additionally, factor in the gas you burn going to and from the video store, the potential late fees if you don't get it back in time, and the irritating scratched DVD that just won't play.
One of the issues I have with this concept is that if video rental stores to go out of business, what choices do I have when it comes to cable providers. Currently I live in Renton and the ONLY cable company you can have is Comcast. What if Comcast decides to raise their prices and I can't afford the service anymore?
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2 comments:
I think the concept of VOD is great, but the downside is the potential high costs of it, and the point you bring up about the closing of video stores, what would people do who have limited access to cable? I do think as VOD catches on, and more people opt for the service, it may lower in price. Plus, with cable companies trying to make ordering more user friendly, we'll probably see more people turn to that service.
The impact of VOD on the TV industry is already present. Networks are already in high gear trying to figure out ways to make advertising more effective even if people record content on DVRs or if they watch them on demand.
Personally, I think VOD is a mixed bag. While I love the convenience of not having to go to the video store - or wait for Netflix to arrive, I also find current selections pitiful. Not to mention the absence of all the extras that come on a DVD, like interviews, alternate endings or different languages.
I believe that commercialism will pervail, as it always has, and networks/cable companies will find a way to make the consumer pay.
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