How Will the TV Industry Be Affected by Internet-Enabled Televisions?


Quick Answer

Internet enabled TVs are already changing the face of the TV industry, by increasing the amount of subscribers to video-on-demand services such as Netflix and Amazon's Video on Demand. As a result, this will increase the variety of content available to viewers at any point in time. Internet enabled TVs are very likely to further decrease revenues and subscriptions for traditional TV and Cable providers.

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Full Answer

The increased availability of trackable user data generated by the use of Internet enabled TVs will help providers of video-on-demand content get a better understanding of their audiences habits and preferences. The data available will help providers see not only what their viewers are watching, but also when and how long they watch videos, as well as what they viewed before and after. This will help content providers make-well-informed decisions about how to tailor their content for their viewers to increase overall viewership and engagement.

With the rise of Internet streaming services accelerated by Internet-enabled TVs, the practice of binge watching several episodes of series in a row is likely to increase. Video-on-demand providers and production companies are likely to change their strategies to accommodate for this by releasing seasons of TV shows all at once, instead of broadcasting episodes on a weekly basis.

Another likely effect resulting from the rise of Internet-based television and Internet-enabled TVs is the increase in the overall number of content providers. Internet-enabled TVs can access content more directly than traditional channels of major networks that were once the only way to reach audiences. This lowers entry costs for new studios and video content providers, and should increase the overall range of content available to viewers.

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