The Economics of Internet Television: Business Models and Program Content

Title: The Economics of Internet Television: Business Models and Program Content

Research Question: How can the economic characteristics of Internet technology influence the development of business models and program content for Internet television?

Methodology: The study uses economic principles and historical data from established broadband media to analyze the potential of Internet television. It also considers the experiences from previous Internet television trials.

Results: The research identifies five economic characteristics of Internet technology that can lead to greater efficiencies in Internet television:

1. Lower delivery costs and reduced capacity constraints 2. More efficient interactivity 3. More efficient advertising and sponsorship 4. More efficient direct pricing and bundling 5. Lower costs of copying and sharing

The study suggests that the most successful Internet TV business models are likely to involve syndication to or from other media and international distribution. It also predicts that high-production value programming, such as Hollywood movies, will have the most appeal to audiences, due to the attractiveness of these business models. Historical evidence about the performance of cable television and videocassettes supports these points.

Implications: The research suggests that the future of Internet television will involve a mix of innovative, niche programs and broad appeal programming. The success of Internet TV business models will depend on their ability to balance these two factors. The study also highlights the potential for Internet television to become another syndication outlet for program suppliers, allowing them to segment their markets and support higher production investments.

Link to Article: https://arxiv.org/abs/0109051v1 Authors: arXiv ID: 0109051v1