Imminent death of two Titans – TV Ads and Landlines

The on demand streaming of TV media and the ability for pause-record-watch provided by setup boxes are empowering the TV viewers to avoid advertisements. The  avenues for ads hit the eyeballs are now limited to the commercial beaks of live TV , such as sports and other live events. They can also be largely surpassed through pause and play provided by setup boxes.(also switching  the channels during ad slots).

The landlines are yet another piece is the garage waiting to be recycled.  The replacement of copper wires with dedicated coaxial cables, lightning fast and tech promoted fibres (such as Google fibre) are creating a merger of voice, video and  text media into a single pipeline. One another outcome of this disruptive change is device independence and boundless information flow. The time has come to start a TV program or a voice/video call at one at device at home continue along at while commute to the work through a different device without loosing the continuity.

What is good and bad about this change ?

  1. TV
    1. The life is getting more and more busy  and day length is still 24 hrs. So the time is precious. The targeted ads through social media and other utility applications (especially free ones such as weather , mail,news etc., in mobile ) are already taking a big pie of what someone want in terms of advertisements to see everyday.
    2. Will this lead to the end of free TV ? .  The lack of ads will challenge the revenue model of the free TV. Alternatively broadcasters will come with ads being interweaved with  program itself. The challenge will be on how to do this without impacting the user experience ? .
  2. Landline
    1. I believe the line rental is quite naive way of collecting money and I can’t think of a survival strategy for fixed landline
    2. As per Ofcom UK Communication facts 15% UK population [Ofcom]  don’t have fixed landline. The US is already moving to 100% IP phone systems . The AT&T has started adopting the mantra of no landline . As on end of 2013 almost 40% US households don’t have land phones.

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Conclusion

The trend clearly indicate that the utility specific devices are disappearing.  The one to one match of TV program with TV and land line phone for voice communication are  no more a reality. Also the need of on-demand pervasive access to the information and entertainment and the growth of social media pushing out conventional wisdom. There is a need to have a creative survival strategy for organizations providing communication and media services to the customers.

Posted in Media & Technology