1. The
Future
of
Television
By
CEO
Carey
Martell
www.martelltv.com
careymartell@martellbrothers.com
2. The
Present
• Television
networks
distribute
programming
from
a
central
operaBon
that
provides
content
to
a
number
of
regionally
operated
TV
staBons
or
Pay
TV
providers,
who
then
transmit
the
content
to
viewers
for
watching
in
their
homes.
• The
television
industry
evolved
from
the
radio
networks
of
the
1920s,
and
is
sBll
stuck
in
that
anBquated
thinking.
3. The
Present:
The
"Old
Guard"
Since
1986,
commercial
broadcast
television
has
been
dominated
by
the
'Big
Four'
networks;
ABC,
CBS,
NBC
and
Fox.
• 'The
Big
Four'
provide
the
overwhelming
majority
of
programming
content
for
their
affiliate
staBons,
though
affiliate
staBons
reserve
air
Bme
for
local
programming
(such
as
news
shows).
• There
exists
smaller
broadcast
staBons,
such
as
the
religion
focused
Trinity
BroadcasBng
Network,
who
provide
speciality
programming.
• The
largest
broadcast
network
is
the
publicly
owned
Public
BroadcasBng
System
(PBS),
a
non-‐profit
educaBonal
service
funded
by
the
federal
government
and
private
donaBons.
4. The
Present:
Broadcast
TV
Broadcast
television
('over-‐the-‐air'
TV)
use
terrestrial
television
signals
emi[ed
and
carried
by
radio
towers.
• Broadcast
television
networks
primarily
broadcast
signals
through
the
air
using
TV
transmi[ers.
• Through
a
network
of
broadcast
relay
staBon
(also
called
'repeater
staBons')
antenna
towers,
the
central
staBon
can
boost
the
reach
of
their
signals
to
reach
all
residents
of
a
county.
• Some
broadcast
staBons
are
independently
owned,
referred
to
as
‘network
affiliate
staBons’.
They
license
and
rebroadcast
content
from
one
of
the
‘Big
Four’
staBons
to
the
counBes
they
service.
Broadcast
TV
StaBon
City
Homes
Country
Homes
Antenna
tower
Country
Homes
Antenna
tower
5. Drawbacks:
Broadcast
TV
• OperaBng
repeater
staBons
and
antennae
towers
is
expensive;
they
must
be
maintained,
and
the
government
has
special
taxes
on
their
operaBon.
• Although
the
majority
of
regional
staBons
simply
simulcast
the
content
of
another
staBon
through
use
of
a
'network
feed’,
the
FCC
requires
that
broadcast
staBons
be
properly
staffed,
making
full
automaBon
of
TV
staBons
impossible.
6. The
Present
-‐
Cable
TV
Cable
TV
relies
on
'superstaBons'
(some
of
which
also
do
broadcast
TV)
to
transmit
signals
to
orbital
satellites.
• In
specific
geographical
locaBons,
a
network
of
towers
capture
signals
from
the
satellites.
• The
towers
relay
those
signals
through
cable
lines
that
run
directly
into
consumer's
homes
through
a
set-‐top
box
that
decodes
the
box
signals
for
viewing
on
a
TV.
Homes
Antenna
tower
Homes
Antenna
tower
Satellite
SuperstaBon
7. Drawbacks
-‐
Cable
TV
• Like
with
broadcast
TV,
it
is
expensive
to
maintain
the
network
of
signal
receiving
towers
and
cables.
• Cable
TV
systems
must
also
pay
municipal
districts
a
'Cable
Television
franchise
fee'
for
the
right-‐of-‐
way
use
of
public
property
(the
public
property
that
the
cables
run
along
in
order
to
reach
consumer
homes).
• Cable
companies
are
required
by
the
1992
Cable
Television
Consumer
ProtecBon
and
CompeBBon
Act
to
obtain
retransmission
consent
and
pay
a
fee
for
the
right
to
carry
broadcaster's
signals.
Furthermore
the
Act
prohibits
cable
companies
from
charging
broadcasters
to
carry
their
signals,
limiBng
revenue
opportuniBes
for
the
cable
companies
while
giving
the
broadcasters
an
unfair
advantage
when
negoBaBng
contracts.
• The
enormous
expense
of
operaBng
Cable
TV
systems
and
inability
to
charge
broadcasters
forces
the
systems
providers
to
charge
monthly
subscripBon
fees
to
the
viewer.
8. The
Present:
Satellite
TV
Satellite
TV
is
provided
directly
to
the
consumer
by
allowing
a
small
dish
receiver
unit
installed
on
the
home
to
capture
signals
re-‐broadcast
from
the
superstaBons
using
orbital
satellites.
Satellite
SuperstaBon
Homes
Homes
9. Drawbacks
–
Satellite
TV
• Like
with
cable
TV,
it
is
expensive
to
purchase
and
maintain
the
orbital
satellites
and
broadcasBng
equipment
necessary
to
transmit
signals
to
the
satellites.
• Viewers
must
have
their
own
satellite
signal
receiving
dish
and
decoder
box
to
receive
the
transmissions.
The
expense
of
the
equipment
causes
the
Satellite
TV
system
provider
to
charge
the
viewer
a
monthly
subscripBon
fee.
10. How
the
Money
Is
Made
Broadcast
TV
• Primarily
funded
by
ad
revenue.
Network
affiliate
staBons
who
rebroadcast
signals
typically
sell
air
Bme
to
local
businesses
for
running
ads,
with
the
originaBng
broadcast
staBon
taking
part
in
revenue
sharing
on
profits
from
these
locally
aired
commercials.
Satellite
&
Cable
TV
• StaBons
listed
in
the
electronic
channel
guides
are
paid
a
"per
subscriber
fee"
from
the
Cable
/
Satellite
systems
provider
for
the
right
to
re-‐broadcast
their
signals
through
the
electronic
channel
guide.
Broadcaster
TV
staBons
receive
10%
of
their
revenue
from
these
rebroadcast
fees.
• In
turn,
the
Cable
/
Satellite
system
providers
makes
their
revenue
by
charging
a
monthly
subscripBon
fee
from
the
viewer,
usually
by
creaBng
subscripBon
plans
that
package
several
desirable
staBons
together.
11. The
Future
:
iTV
Systems
Cloud-‐based
internet
television
(iTV)
systems
that
stream
video
signals
through
the
internet
to
the
consumer
will
be
the
model
for
the
next
100
years.
• Using
computer
servers,
Content
Providers
feed
their
videos
into
the
electronic
channel
guide
of
the
ITV
system
provider,
who
provides
a
suite
of
tools
to
allow
the
Content
Providers
to
run
virtual
TV
staBons
that
users
can
access
to
receive
both
live
video
feeds
and
pre-‐recorded
shows.
Content
Provider
Video
Host
Servers
Mobile
Devices
Living
Room
HD
TVs
Laptops
iTV
System
Provider
12. Advantages
of
Cloud-‐based
TV
• Unlike
cable
or
satellite,
the
viewer
does
not
need
to
be
restricted
to
a
fixed
locaBon
to
watch
content;
they
can
tap
into
wi-‐fi
networks
using
mobile
devices
and
laptop
computers.
• Municipals
cannot
claim
franchise
fees,
since
the
iTV
system
provider
does
not
use
public
property
to
provide
their
service,
but
rather
leverages
the
exisBng
relaBonships
of
internet
service
providers.
• Expensive
broadcast
equipment,
such
as
for
sending
signals
to
orbital
satellites,
is
not
necessary.
• The
Cable
Television
Consumer
ProtecBon
and
CompeBBon
Act
does
not
apply
to
iTV
systems,
allowing
the
iTV
system
provider
to
have
more
freedom
when
negoBaBng
contracts
with
broadcasters,
such
as
charging
content
providers
for
special
services
and
share
in
ad
revenue
earnings.
13. Impact
of
Cloud-‐based
TV
• Because
internet
service
providers
connect
viewers
to
the
iTV
system,
there
is
no
room
for
'network
affiliate
staBons'
in
the
new
television
ecosystem.
Unless
they
transform
into
content
producers
the
affiliate
staBons
will
go
bankrupt.
• Due
to
the
low
cost
of
reaching
viewers
world-‐wide,
content
providers
do
not
need
to
license
their
content
to
third-‐parBes.
Content
providers
can
directly
transmit
to
viewers
no
ma[er
where
they
live.
• Due
to
the
low
cost
of
operaBng
and
reaching
viewers,
StaBons
specializing
in
micro-‐niche
subject
programming,
such
as
content
designed
to
appeal
to
subcultures
(ex.
goth
lifestylers,
anime
fans)
can
be
profitable
ventures.
Non-‐profit
educaBonal
broadcasters
such
as
PBS,
local
access
or
student-‐run
school
staBons
are
also
benefited
by
the
low
cost
of
entry
and
operaBon
of
this
technology.
14. Problems
with
exisBng
soluBons
• If
you
want
to
use
Youtube,
you
must
upload
ALL
your
videos
to
Youtube.
• Youtube
is
in
control
of
the
relaBonship
with
your
adverBsers.
• Youtube
intenBonally
drives
traffic
from
YOUR
channel
to
a
compeBtor's
channel
using
the
“related
videos”
feed
on
your
video
watch
player.
• Youtube
restricts
your
ability
to
communicate
with
audiences;
no
mailing
list
for
channel
subscribers.
• Youtube
does
no
markeBng
for
your
channel,
but
instead
requires
you
to
market
Youtube
in
order
for
people
to
find
your
channel.
These
problems
also
apply
to:
Vimeo,
blip.tv,
Twitch.tv,
and
virtually
every
other
streaming
video
plalorm
on
the
internet.
They
are
designed
as
video-‐sharing
websites,
not
television
systems.
Case
Study:
