Do not adjust your set: a revolution in television as content moves online
Internet viewing expected to treble, boosted by free video on demand websites
There's a revolution going on in television but you may not necessarily be watching it on the set in your living room.
Online viewing of programmes in the UK will more than triple in the next few years, according to the latest forecasts, boosted by new video on demand websites offering the best British and US shows to internet users for free.
UK viewers are not about to be able to watch all their favourite American shows on their computers for free – at least, not legally – as US studios and networks have lucrative deals with British broadcasters giving exclusive TV transmission windows for shows such as CSI, Lost, and Desperate Housewives.
However, mindful of how illegal file-sharing has damaged the music industry, broadcasters in the both the US and UK are creating partnerships to offer an increasingly wide selection of TV shows to internet users legally and for free.
In 2008 there were just over 1.6bn views of TV shows by UK internet users through free online TV services, according to research firm Screen Digest. This figure is forecast to jump to close to 5bn views by 2013.
British fans of critically lauded US drama Mad Men got a tantalising glimpse of what the future may hold for online TV viewing this week when – for a couple of days – the first episode of the third series was available to watch for free on the internet, nearly six months before the show will be broadcast in the UK on BBC4.
After what appears to have been a mistake by Mad Men's US broadcaster AMC, the episode is no longer available to view by UK internet users.
UK viewers are already accustomed to the idea of catching up with their favourite BBC shows, such as Doctor Who and The Apprentice, via their computer, thanks to the iPlayer.
Likewise, fans of Britain's Got Talent and The X Factor are logging on to the ITV.com website in increasing numbers to see video of Simon Cowell's latest catty put-downs.
The next development over the coming months will be the launch of competing video-on-demand websites offering TV shows from a variety of UK and US broadcasters all in one place.
"It feels like a gold rush is going on, everyone is seeing a big opportunity and jumping in," said Erik Huggers, head of the BBC's future, media and technology division.
"The number of entrants is staggering – the fragmentation reminds me of the music industry and all the digital offerings before Apple and iTunes came along."
Microsoft has already launched a pilot version of its MSN Video Player, offering a limited number of shows including Peep Show, Shameless and The Young Ones. Once MSN Video Player is fully up and running it is expected to be complementary to existing services such as the BBC iPlayer, with its seven-day catch up for current shows, offering older archive programming.
Microsoft will face competition from Hulu, a video-on-demand joint venture backed by News Corporation, NBC Universal and Disney.
Hulu – strapline "Watch your favourites. Anytime. For free"– is already up and running in the US, with the most popular shows on the website this week including Family Guy, The Tonight Show with Conan O'Brien, and Hell's Kitchen.
The joint venture is looking to do deals with British broadcasters for homegrown programming and has offered ITV a significant stake in its UK operation, which could launch early next year.
Google-owned YouTube has also been holding discussions with UK broadcasters about online programming rights as the video-sharing website attempts to move beyond short clips, often homemade, to offer full-length TV shows.
The other contender lining up to launch a video-on-demand website is Arqiva, the company that owns the UK's TV and radio transmitter network. Arqiva has yet to announce any deals with broadcasters for programming but is reported to have reached agreements with Channel 4 and the BBC for some content.
"We welcome competition in the market, it means more and more quality content and more choice for viewers," said Pierre-Jean Sebert, chief executive of the as yet unnamed Arqiva online video venture.
"We believe we are very well placed to play an aggregation role online [of TV shows] and be one of the main players."
Around the fringes there are smaller players, including BlinkBox, which offers films and shows from partners including BBC Worldwide and Shameless-maker All3Media, and Joost, which has admitted it is struggling to find a viable business model.
The biggest issue for ITV, Channel 4 and Channel Five, which are also trying to build their own online TV services, is how much control over programming and ad revenue might have to be given up in each deal on the table.
While negotiations between the parties continue, Five has just struck a deal with Sony to provide on demand TV shows directly through its next internet-enabled TVs,
However, the BBC's Huggers warned that consumers may find navigating the new world of competing video-on-demand services difficult.
"What is happening is everyone is trying to get in there and that is confusing for consumers," he said.
"And there will be more entrants to come. For the companies in the space there will be a shake-out as scale and critical mass is critical.
"The services that have the right mix of content and strong brand name will see it through."
At the moment these online TV services can mostly only be accessed via a computer screen.
However, another development in the pipeline is for video on demand services to be available more widely via traditional TV sets, offering a better viewing experience.
The BBC estimates that one-third of all iPlayer viewing comes via the video on demand service offered to Virgin Media's 3.6 million cable subscribers via their TV sets.
In partnership with ITV, Channel Five and BT, the BBC is also developing Project Canvas, which will make TV shows available on a video on demand basis to millions of Freeview and Freesat viewers.
Project Canvas is due to launch next year, although it is facing criticism from rival companies including BSkyB, claiming it could dominate the burgeoning market for video on demand and stifle competition.
Five has also this week signed a deal with Sony to make shows including Neighbours and Home and Away available via a new internet video service that will come built into the next generation Bravia TV sets that go on sale from next year.
BBC iPlayer's most popular shows
Web users made 45m requests to watch TV programmes on the BBC iPlayer in July. The service's top 10 most requested shows in the 12 months to the end of March were:
1 EastEnders
2 Top Gear
3 Doctor Who
4 The Apprentice
5 Live at the Apollo
6 Merlin
7 Gavin and Stacey
8 Mock the Week
9 Waterloo Road
10 Never Mind the Buzzcocks
Mark Sweney
The Guardian, Saturday 5 September 2009
guardian.co.uk © Guardian News and Media Limited 2009
Internet viewing expected to treble, boosted by free video on demand websites
There's a revolution going on in television but you may not necessarily be watching it on the set in your living room.
Online viewing of programmes in the UK will more than triple in the next few years, according to the latest forecasts, boosted by new video on demand websites offering the best British and US shows to internet users for free.
UK viewers are not about to be able to watch all their favourite American shows on their computers for free – at least, not legally – as US studios and networks have lucrative deals with British broadcasters giving exclusive TV transmission windows for shows such as CSI, Lost, and Desperate Housewives.
However, mindful of how illegal file-sharing has damaged the music industry, broadcasters in the both the US and UK are creating partnerships to offer an increasingly wide selection of TV shows to internet users legally and for free.
In 2008 there were just over 1.6bn views of TV shows by UK internet users through free online TV services, according to research firm Screen Digest. This figure is forecast to jump to close to 5bn views by 2013.
British fans of critically lauded US drama Mad Men got a tantalising glimpse of what the future may hold for online TV viewing this week when – for a couple of days – the first episode of the third series was available to watch for free on the internet, nearly six months before the show will be broadcast in the UK on BBC4.
After what appears to have been a mistake by Mad Men's US broadcaster AMC, the episode is no longer available to view by UK internet users.
UK viewers are already accustomed to the idea of catching up with their favourite BBC shows, such as Doctor Who and The Apprentice, via their computer, thanks to the iPlayer.
Likewise, fans of Britain's Got Talent and The X Factor are logging on to the ITV.com website in increasing numbers to see video of Simon Cowell's latest catty put-downs.
The next development over the coming months will be the launch of competing video-on-demand websites offering TV shows from a variety of UK and US broadcasters all in one place.
"It feels like a gold rush is going on, everyone is seeing a big opportunity and jumping in," said Erik Huggers, head of the BBC's future, media and technology division.
"The number of entrants is staggering – the fragmentation reminds me of the music industry and all the digital offerings before Apple and iTunes came along."
Microsoft has already launched a pilot version of its MSN Video Player, offering a limited number of shows including Peep Show, Shameless and The Young Ones. Once MSN Video Player is fully up and running it is expected to be complementary to existing services such as the BBC iPlayer, with its seven-day catch up for current shows, offering older archive programming.
Microsoft will face competition from Hulu, a video-on-demand joint venture backed by News Corporation, NBC Universal and Disney.
Hulu – strapline "Watch your favourites. Anytime. For free"– is already up and running in the US, with the most popular shows on the website this week including Family Guy, The Tonight Show with Conan O'Brien, and Hell's Kitchen.
The joint venture is looking to do deals with British broadcasters for homegrown programming and has offered ITV a significant stake in its UK operation, which could launch early next year.
Google-owned YouTube has also been holding discussions with UK broadcasters about online programming rights as the video-sharing website attempts to move beyond short clips, often homemade, to offer full-length TV shows.
The other contender lining up to launch a video-on-demand website is Arqiva, the company that owns the UK's TV and radio transmitter network. Arqiva has yet to announce any deals with broadcasters for programming but is reported to have reached agreements with Channel 4 and the BBC for some content.
"We welcome competition in the market, it means more and more quality content and more choice for viewers," said Pierre-Jean Sebert, chief executive of the as yet unnamed Arqiva online video venture.
"We believe we are very well placed to play an aggregation role online [of TV shows] and be one of the main players."
Around the fringes there are smaller players, including BlinkBox, which offers films and shows from partners including BBC Worldwide and Shameless-maker All3Media, and Joost, which has admitted it is struggling to find a viable business model.
The biggest issue for ITV, Channel 4 and Channel Five, which are also trying to build their own online TV services, is how much control over programming and ad revenue might have to be given up in each deal on the table.
While negotiations between the parties continue, Five has just struck a deal with Sony to provide on demand TV shows directly through its next internet-enabled TVs,
However, the BBC's Huggers warned that consumers may find navigating the new world of competing video-on-demand services difficult.
"What is happening is everyone is trying to get in there and that is confusing for consumers," he said.
"And there will be more entrants to come. For the companies in the space there will be a shake-out as scale and critical mass is critical.
"The services that have the right mix of content and strong brand name will see it through."
At the moment these online TV services can mostly only be accessed via a computer screen.
However, another development in the pipeline is for video on demand services to be available more widely via traditional TV sets, offering a better viewing experience.
The BBC estimates that one-third of all iPlayer viewing comes via the video on demand service offered to Virgin Media's 3.6 million cable subscribers via their TV sets.
In partnership with ITV, Channel Five and BT, the BBC is also developing Project Canvas, which will make TV shows available on a video on demand basis to millions of Freeview and Freesat viewers.
Project Canvas is due to launch next year, although it is facing criticism from rival companies including BSkyB, claiming it could dominate the burgeoning market for video on demand and stifle competition.
Five has also this week signed a deal with Sony to make shows including Neighbours and Home and Away available via a new internet video service that will come built into the next generation Bravia TV sets that go on sale from next year.
BBC iPlayer's most popular shows
Web users made 45m requests to watch TV programmes on the BBC iPlayer in July. The service's top 10 most requested shows in the 12 months to the end of March were:
1 EastEnders
2 Top Gear
3 Doctor Who
4 The Apprentice
5 Live at the Apollo
6 Merlin
7 Gavin and Stacey
8 Mock the Week
9 Waterloo Road
10 Never Mind the Buzzcocks
Mark Sweney
The Guardian, Saturday 5 September 2009
guardian.co.uk © Guardian News and Media Limited 2009
