eTV - E-Commerce

IMPACT ON E-COMMERCE

Before the dawn of cable, satellite and the Internet, there was broadcast television.

Early business models centered on advertising revenues. Stations gave programming to the public for free, while charging sponsors for advertising. The greater the number of viewers, the more they could charge the advertisers.

Today, traditional broadcast TV has a number of competitors:

  • Cable networks
  • Pay-per-view
  • Video-on-demand
  • Super-stations
  • Video rentals
  • Satellite distribution
  • Gaming computers
  • Internet

Unseen Entities - If viewers could trace the signal path from the source to their TV sets, they’d be surprised at the number of unseen entities who deliver programming and support interactive communication. These entities (distribution networks, middleware providers & STB application developers) are indirectly funded through the viewer’s consumer and media purchases, and subscription fees.

Sorting out the stakeholders and tallying the comparative rate structures is a complex task, and return on future investment is in good part based of speculation.

The historic broadcast model supported by advertising revenue is ill-suited for enhanced television.

Stakeholders - Investment in emerging and untested technologies requires a great deal of capital and faith. Millions of dollars have been invested into software and hardware to support enhanced and interactive television. The stakeholders can be broadly categorized into:

  • Content creators
  • Broadcasters
  • Distribution networks
  • Infrastructure developers.

Each has its own customers, means of generating revenue, and unique concerns over the economic viability of enhanced television.

 

 

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Introduction - Applications - Models - Impact - E-Commerce - Conclusion - Reference

jarkraus@indiana.edu