Disney's move to offer shows for free on the Internet could be viewed as a direct threat to the business model of cable companies, which have been the gatekeepers of television programming in America for the last few decades. The news is equally grim for phone companies, especially Verizon Communications, which is aggressively moving into the TV business.
Thursday, April 13, 2006
Talk about disruptive technologies
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Disney ABC is going to give away episodes of TV shows like "Lost" and "Commander in Chief" via Internet. Viewers can download episodes after they air on the boob tube. For Free.
The Telcos are lobbying in the House for a bill that will set up a national cable system, rather than regional. Beside taking power out of the hands of consumers, this bill would help the telephone companies get into the video download business, Thus, Disney's move toward free downloads, instead of the iPod 1.99 downloads could spell trouble, at least for one potential economic model.
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