A tidbit on ITunes selling 4 million disney owned television downloads:
Interesting. First question, how many were ~paid~, probably most or all but just checking. 4 Million is not nothing and will only grow.
It’s another example of what I truly believe is underappreciated in business in general and broadcasting/media in particular. $$$ are not the real friction, convenience and awareness is. That is why people download music, as much about accessilibity as cost.
People are at ITunes and want to timeshift and placeshift shows. Convenience. They will pay for these things as long as its easy. They already have ITunes accounts so its a few bucks, no big deal. I wonder if a comparision of total Tivo/Replay users (somewhat similar value proposition) to the number that have downloaded shows on ITunes. My guess is ITunes is higher at a similar point in the lifecycle, basically because its easier.
Another implication of ITunes chugging along is that generally there has been a very close association between the producers of content and the broadcasters of content. (Networks.) Recent developments appears to be adding a new layer and player.
Originally broadcasters were on the airwaves. But then a layer was added for last mile to help add choice and reliability with cable. They took a cut from the consumer to add themselves to the value chain. Now it appears that to really enable placeshifting and timeshifting a new layer in that value chain is being added. Through data (cable or telco pipe providers), ITunes (or Replay/TiVo) provide another layer of value (and cost) to the chain to shift it. Interesting, new dimension, new player, but why? Why didnt broadcasters become cable companies? Will last mile providers become place and time shifters? Time will tell. They want to but will they?
(But so far it feels like the answer is no, new dimension, new players in the chain.)