The question has arisen before: How will old and new media converge?
"Broadcasters have no choice but to embrace new technology and delivery channels," says Karin von Abrams, eMarketer senior analyst and author of the new report, Web Television in Europe: An Expanding Scene. "But they are desperate to ensure they can still monetize their content, even when they are no longer monopoly distributors."
According to Motorola, already by January 2007 nearly one-half of all broadband users in France, Germany, Italy, Spain and the UK were watching TV on the Web over high-speed connections.
By late 2007, the European Interactive Advertising Association (EIAA) found that 30% of Web users in 10 major European countries were watching TV, film or video online.
A Blinkx survey showed that by February 2008 over one-half of UK adults ages 16 and over with Web access said they had watched TV online. One in five had watched full-length TV shows, movies or sports.
Obviously, the potential for online TV viewing throughout Europe is huge—and growing.
"Unfortunately, while online users are viewing more content," says Ms. von Abrams, "producers, broadcasters and advertisers are seeing little return on their online TV ventures."
The proven formulas for making money from television content are under threat.
"Historically, broadcasters' profits have depended on restricted access to their material—viewers had to tune in to a broadcaster-owned channel and watch advertising that covered the costs of program production, promotion and distribution," says Ms. von Abrams. "Advertisers paid a lot to be seen in prime TV slots on these channels, and (until video recording arrived) viewers could not avoid seeing ads."