In its current state, the television distribution landscape offers several methods and alternative strategies to counter the financial issues that networks and advertisers face in the advent of digital media.

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Media experts have articulated a number of adverse circumstances imposed on media producers and third parties by the online distribution of television content. According to Wildman and Chew, “profits from audience gains realized through Internet distribution will be more than offset by losses in traditional distribution channels” (p. 382, 2012). A reduction in broadcast television audiences emerges as a result of viewers transitioning to online distribution of new and syndicated content. This, in turn, impacts on the broadcast television’s appeal as a viable advertising platform. Yet the current mode of streaming television content online is comparatively less appealing than its traditional counterpart. Where the latter’s “hour-long network programs usually have 17-18 minutes of commercial time”, online webcasts are generally void of commercials, giving advertisers less opportunity to invest in online television distribution (Wildman and Chew, p. 386, 2012). Another limitation of online distribution is a generally negative user attitude toward Internet advertisements. The results from one study suggest that tolerance of online television advertising is lower than that of traditional television (Logan, 2012). An underlying reason for this outcome may be that, in its earlier history, the Internet has conditioned its audience to expect “unfettered access to online material”, free of invasive commercials (Logan, p. 14, 2012). This is in line with Brehm’s reactance theory (1981) that suggests an individual will alter their attitudes or behaviours to reclaim freedom and autonomy.

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Past methods employed in sustaining advertising in online television distribution have offered mixed results. During the advent of online modes of distribution, networks experimented with making their content available on a variety of websites. By the late 2000’s, a number of major networks had restricted the level of distribution previously allowed by this strategy. As a study conducted during the period between Summer 2009 and Spring 2010 suggests, networks have continued to limit online access to their television programs – likely due to the financial tradeoff associated with the shift in audiences from traditional formats to online platforms (Wildman and Chew, 2012).

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​REFERENCES:

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Brehm, J; Brehm, S. 'Psychological Reactance: A Theory of Freedom and Control' New York: Academic Press. 1981.

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Logan, K. ‘And now a word from our sponsor: Do consumers perceive advertising on traditional television and online streaming video differently?’ in Journal of Marketing Communications, Feb 2012, p.1-19

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Wildman, S; Chew, H. ‘Television in Flux’ in Understanding the Interactive Digital Media Marketplace: Frameworks, Platforms, Communities and Issues. Ch. 30, p.378-391. 2012.