I do hulu, etc. on a regular basis even if I have to sit through extended commercials for pointless videogames.

And I totally agree that there are people** who are substituting their Tivos with a seedbox…

**same desclaimer as above.

Since Hulu arrived on the scene, it’s been pretty clear that the old models of distribution are dying.

We saw the beginning of this new era of media access with ‘on-demand’ features being added to most television service providers. Of course, the on-demand system is shoddy and irrelevant, providing at best an outlet for nostalgic access to old epsisodes of only the most popular programming. Limited selection and massive delay from air-date fail to address the actual needs of customers who don’t want to be trapped adhering to the fixed schedules of network programming.

Websites like SurftheChannel and ThePirateBay address a real need by providing access to nearly all programming as soon as an hour after air-time, however issues of ethics and security prevent many people from these exploits.

When Hulu finally caught on and became a viable distribution method, the media savvy were overjoyed at the opportunity to quickly stream high quality video from a legal source. Nearly everyone I’ve spoken with about the service (I work in the entertainment industry, on the production side), say that they would be willing to pay a subscription fee and purchase hardware if Hulu became a universal provider for all programming.

The library of content, freedom from scheduling your life around programming, and access to clips and ancillary content related to your selections is a very attractive system. From a content provider standpoint, the ability to accurately track views, recieve instant feedback from viewers, and reach your target market without having to compete for favorable time-slots is almost too good, as major production companies must compete with a neverending stream of fresh, creative, and innovative content from smaller and independent providers.

The real factor that needs to be considered is the complete obsolescence of the Nielson Ratings system. As the method of end user media absorption changes, the classic modes of measuring the effectiveness of distribution no longer provide accurate estimates of the popularity of individual programs, only the average viewership of a particular time slot.

The ‘Chuck’ effect illustrates the problem that networks must now address. How do you profit from the popularity of your show when your audience has evolved past the method of distribution?

The inevitable answer is a simple one. The networks must support the complete migration to a comprehensive online media distribution system.

The fear of record companies to adapt lead to the death of music retailers and massive revenue losses. Television networks that do not adapt will similarly suffer.

Until the networks capitulate, torrent sharing and video hosting sites will continue to thrive at the expense of the content producers, who rely on advertising revenue to support their productions. In the meantime, I’ll be watching Big Bang Theory and How I Met Your Mother on megavideo, just like everyone else who missed them whenever the hell they were on.

I think that the Entertainment companies really need to move forward more completely with the new on line delivery method (and actually they have over the past 2 yrs!). Broader web distribution anytime of day and recoup costs through advertisements. I believe all benefit from this new age media distribution method. Lets hope the train don’t stop rollin’