Consumer Confusion: Why We Need To Redefine Television2

By Marti Resteghini, Oct 06, 2011 in P.O.V.

In a world where changes in technology are happening at the speed of light, we require constant education. What is Blu-ray, and how does it make a movie better? Or, should I even care about Blu-ray anymore? How is an iPad different from a Mac laptop? What’s an app?

For an industry in the throes of cataclysmic shifts in economics, format, and creative, answering these questions quickly and succinctly is paramount. Some questions about changes in entertainment and technology are easy to answer. For example: TiVo is a digital VCR. You can still record your favorite shows, only you no longer have to buy VHS tapes. Some are not so easy. For example: Hulu is an online video service that offers a selection of hit broadcast and cable TV shows, clips, movies, and more at Hulu.com. (This is Hulu’s official definition of itself on its own site.) For the average viewer, that doesn’t really mean anything. Trust me, whenever I tell people I work for an online video distributor, I get a blank stare. (I learned to do that from previously saying that I work for an online television network. As they say, you gotta know your audience.)

So what is Hulu? It’s an on-demand streaming channel owned by several participating television networks, which distributes programming via its website and an application available on other devices.

Although this sheds more light on what Hulu is, this is not an answer you can give the general consumer. It offers up opportunities to ask a multitude of other questions and doesn’t explain why Hulu is “better.”  And here lies the problem.  The owners of Hulu, traditional networks and cable providers, are scared to tell you its better, because doing so puts Hulu in direct competition with its owners primary businesses. The creators of Hulu have inadvertently, and collectively, created their biggest competitor – themselves.

The real answer to the question, which its owners are likely afraid to admit, is if Hulu is the modern-day channel – the same way TiVo is the modern-day VCR. It’s not a TV channel. It’s not a cable channel. It’s just a channel – a vehicle to deliver entertainment, news, and information… except it’s not limited to your TV, it’s everywhere.  This is the future of television.

If we embrace that idea, things start to make sense. If Hulu is a channel, then so is KoldCast, FearNET, Crackle, and theWB. These are all channels, providing a multitude of different types of entertainment, which are programmed for the viewer. These channels originated online but reach televisions, and other devices, through other applications. CBS, NBC, ABC, HBO, FOX, the CW, and TNT are still channels but originated on television.

The television industry, in its most general definition, is in trouble. But it’s not in trouble because people no longer want to watch TV. On the contrary, there are so many ways to watch TV that it’s hard NOT to. And that’s exactly it. Technology has provided  a multitude of opportunities to enjoy television without regard to the average consumer. There are so many gadgets, applications, and services available now that consumers can easily become confused. Many consumers have been scared into holding on to what’s comfortable and familiar (aka old technology), thus missing out on discovering a “better” type of television experience.

The television industry is in trouble because it’s scared to redefine itself.   Doing so means a lot of people who make a lot of money will lose their jobs.  On the flip-side, these people will be replaced by others who understand the new business model.

Humans are afraid of change – even though we know it’s inevitable. We don’t want to doubt the purchase of a brand new flat screen TV, the cancellation of our Netflix subscription, or the decision to add Bluetooth capabilities on a new car.  Still, we’re willing to try anything if it promises to make our lives better, easier, and more fun.  Funny how that is.

Marti Resteghini is the Editor-in-Chief of The Sixth Wall. Formerly, she was the VP of Network Programming and Acquisitions at KoldCast TV. Prior to joining KoldCast, Marti served as vice president of development and production at Warner Bros.-based production company, HDFilms, where she oversaw the development, production and distribution of feature films, television and new media content across multiple platforms. In this post, Marti produced many high-profile original series including “Chadam,” “Creepshow: Raw,” based on the 1980s cult classic feature film, and Crackle’s “The Jace Hall Show.”