Netflix And On-Demand Viewing Will Destroy Lazy TV
AMC Networks AMCX +0.56% CEO Josh Sapan has an interesting op-ed in The Wall Street Journal today about this titled “The Death of Indifferent TV Viewing.” For the majority of the history of television, networks have used the power of the TV schedule to goose certain shows. Launching a new sitcom? Slot it at 8:30 between two shows that are already hits. Want to make sure people flip to your channel? Get a spot high up on the cable lineup so viewers don’t have to look too far down the line to find you.
Sapan points out that today, those tactics no longer work. As TV interfaces improve it’s easier than ever to just search for the show you want to watch instead of having to channel surf. As cable becomes increasingly unbundled, viewers will have an even easier time only watching the shows they want to watch. There will be no more lazy viewing.
This is going to create a seismic shift in the TV landscape. Executives at all of the networks will have to work harder to create better shows. This will be easier for networks like Sapan’s AMC which can get away with only programming a few original hours per week and relying heavily on reruns and movies to fill out its schedule.
It will be much more challenging for the legacy networks like NBC and CBS CBS +0.16%. It’s been clear for a while that they are going to have to radically rethink their models. Shows like American Idol and The Voice
were good choices because they required the kind of live viewing that
is becoming increasingly rare. But now the networks are sinking to what
feel like gimmicks with things like live staged musicals. Sports will
always be the trump card but viewers aren’t going back to the old way of
watching TV and the networks will have to adjust.
It will be interesting to
see if they can come up with some really creative solutions to this
problem. As AMC has shown, appointment viewing still exists. Everyone
wants to watch The Walking Dead live so they can be part of the
conversation the next day. But making high-quality shows is difficult,
especially in the volume networks need.
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