Last week Envisional published a briefing note on TV Piracy, noting that the UK currently leads the trend for downloading TV content, invariably throught BitTorrent.
Between, the rapid adoption of digital terrestrial, the penetration of paid digital satellite, the emergence of low-cost PVRs and innovators such as HomeChoice and Kingston, the UK is one of the world's most technologically and fiscally vibrant television markets. Therefore, it should be no surprise that TV piracy is rising in concert with broadband penetration.
However, broadband operators that are salivating at the prospect of increased ARPU through multi-play, do not seem to be considering anything approaching the base of content available through P2P networks. Indeed, content owners, caught flat-footed by the rapid growth of TV piracy, are focussing efforts on anti-piracy measures (this is Envisional's motivation) rather than the creation of new market opportunities and reform of copyright to fully exploit the internet age.
The TV industry is reacting in precisely the same way as the music industry did; seeing their content stripped of its traditional advertising and syndication revenues, they seek protectionist measures.
Like music, what P2P networks are ably illustrating, with the availability of TV content, is that the 'infinite shelf-space' of the internet makes traditional distribution models (TV channels) obsolete and that real value is will shift towards those who offer the means to navigate and discover content - EPG providers, digital communities, search engines - not those who can simply deliver content. Like music, users have created their own infrastructure for distributing TV online - delivery of content is a no-brainer.
The emergence of an iTunes equivalent for TV could force the issue, dintermediating channel carriage & distribution models in favour of consumer electronics manufactureres, portals and search providers.
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