TVs & PCs - A convergence that won't come too soon

14.05.06 05:43 PM By S.Swaminathan

NY Times has an interesting article on why the convergence will take some time to happen:

David G. Sanderson, who heads the media consulting practice at Bain & Company, offers four reasons most people won't be downloading their favorite shows onto their TV's any time soon: limitations in broadband infrastructure, the degree of readiness among electronics makers to provide a product with mass appeal, the behavior of consumers and the agenda of the players in the TV ecosystem.

Mr. Sanderson's first two points — basically whether the Internet-based network and devices are ready for prime-time — are where most of the action is and where things could change if businesses keep investing and innovating. Still, for now, there are logjams associated with delivering large quantities of video over the Web and the unresolved "net neutrality" debate over whether heavy users should pay more to telecommunications carriers for the large amount of bandwidth they use.

His second two points — about consumer behavior and the entrenched players — are actually more complex. The consumer question boils down to whether enough people want to give up access to the dozens or hundreds of channels they pay for through their cable providers to buy programs over the Internet. And that is closely related to his point about the industry structure, which is a function of the willingness of cable networks to risk giving up their guaranteed monthly subscription fees in favor of a free-wheeling Internet alternative.

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S.Swaminathan