The Economics of Online Television: Industry Development

Right since the middle of the year 2000, the adoption of internet broadband has increased by a considerable level worldwide. Almost two-thirds population of the United States is now using online television as the transmission speeds over the internet have increased dramatically. It is now possible to download video content and shows with ease on handsets and laptop computers.

Although the era of the online video industry started in the early 1990s; however, only very few TV programs were transmitted online at that time. Later in the year 2005, iTunes started delivering recent TV series for direct download on payment. However, the launch of YouTube in the same year changed the trend as many users started posting full episodes of famous TV shows online illegally. After several warnings, the program suppliers and the networks issued some takedown orders to the people showing such illegal behavior online. Soon after that in the years 2008 and 2009, NBC and Fox launched Hulu.com whereas CBD started tv.com for providing online access to the regular series programs. And then in the year 2010, many other players emerged in the market, and few services at that time were provided by cable operators.

With time, a wide range of revenue-based models emerged. The market for commercial online video suppliers has increased and they are offering a variety of content online. The online TV programs are now making profits out of subscriptions, advertising and VOD accounted for not more than 2% of the total revenue.

In terms of economics, the entertainment and media industry give a major contribution to the U.S. economy. The television and film industry alone generates an estimated profit of $41 billion every year. At the same time, this sector provides employment to more than 2 million around the world. The publishing industry in the United States includes almost 6000 magazine publishing companies that generate annual revenue of almost $28 billion. Furthermore, there are 2600 book publishing businesses around the country that generate a combined revenue of $27 billion. The radio broadcasting and programming companies in the United States including radio stations and networks consists of a total of 3,348 companies that lead to an average profit of $17 billion yearly. Most of the total radio broadcasting revenue is generated by some local advertisements that are relayed on the radio programs. Stats reveal that there are around 1300 television broadcasts as well as cable network companies within the United States and they provide an annual revenue of $126 billion.

Working in the media and entertainment sector may appear exciting and challenging at the same time. These professionals are the first people to know about the happenings around the world and grab the opportunity to circulate information to the outside world. Most of these jobs also give entertainment and media workers a chance to meet celebrities during their workdays.

The online television industry is now using the latest technologies and advancements to capture audience attention. Most of the program suppliers are following the streaming video-on-demand model. The affordable smartphones and tablets along with accessible high-speed internet connections have made it possible to stay tuned to the favorite programs and news channels on the go. It is even possible to access content in the preferred language to meet your specific needs. Many channels and streaming systems also allow people to use ad-blocking features to enjoy uninterrupted entertainment. In this scenario, the program suppliers are able to maintain healthy connections with the target audience online. The professionals at CNN live are also following the latest technologies to ensure a satisfactory experience to the viewers around the world.