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Essay / Television Programming - 1146
In the beginning, television programming was free to anyone with a television and an antenna. Unfortunately, there weren't many channels to choose from and they were all filled with advertisements. Later, cable companies found success by charging consumers to deliver an ever-increasing number of channels to their homes. But it always seemed like there was never anything good, and everything was always loaded with ads. Today, advanced telecommunications technology allows consumers to access television and video content on demand via the Internet, provided they have a broadband or high-speed connection. Growing penetration of the broadband Internet service market could lead consumers to abandon traditional television in favor of video-on-demand distribution over the Internet, and force producers of traditional television content to find new ways to maintain their profits. following this change. Video content on a television screen via the Internet has become easy for the average consumer. Streaming video players, which connect televisions to the Internet and allow someone to easily navigate the vast sea of video content on the Internet, are readily available for purchase at electronics stores. One such product, the Roku 2 HD, costs about $60 and provides access to hundreds of online video channels with no subscription fees over a high-speed Internet connection ("Choose Your Roku," 2011; " Roku Channel Store,” 2011). Meanwhile, Cox Communications charges around $20 per month for a very basic programming package consisting of 23 channels (“Cox Communications,” 2011). Since the Roku only costs three months' worth of the most basic cable TV service and doesn't require a subscription... middle of paper ... of which $734 million comes from video ( Perren, 2010, p.74). Although advertising revenue is still low for online video, the number of people watching it is large and growing rapidly. In November 2010, the Washington Post published an article stating that Netflix's video service alone accounted for approximately 30% of all consumer Internet traffic during peak periods (as cited in Kang, 2011a). With so many consumers turning to online viewing, it's clear that the industry will need to find a way to make it work. The consumer trend toward high-speed Internet connections and Internet-based video-on-demand services is clear. Cable companies will continue to lose their once dominant positions unless they are able to leverage these new technologies to improve their customers' experiences while increasing the value of their advertising space..