Originally Posted by macarena
This wont stop - just delay the inevitable. They say nothing can stop an idea whose time has come. In this case, it is just a question of time before all the parts of the equation fall in place, and Apple (or someone else) can offer an iTunes or NetFlix like business model for TV Shows.
Like I said above, nobody has made a profit off their online streaming business. Explain how Apple could make a profit by producing a show at a cost of $1.2 million per episode (average cost for a 1 hour drama) and then offer it for free online? Even Hulu, which sells ad space, doesn't make enough money to pay for a single TV show--last year its profits were estimated at less than $20 million, which isn't enough to pay for a single season of 24 or Heroes.
For Live Sports, I am not sure what the situation is, with respect to US sports, but there are quite a few sports that have embraced the online model willingly. Cricket boards across the world, and the ICC have sold "Internet rights" along with TV Rights for several years now. There are websites like willow.com, etc that exist exclusively for live online cricket viewing. It is just a question of time before this becomes universal.
The US sports broadcasting rights are much more lucrative than abroad. Right now the NFL sells its TV broadcasting rights to the tune of $21 BILLION
dollars to all 4 networks. Since nobody can make money streaming online content right now, let alone 21 billion dollars worth, I don't think live sports will go away anytime soon.
In any case, a lot of premium sports have a separate charge, and are not included in the "regular" cable bill - so might as well pay this separate charge to an online provider.
That's not true for mainstream sports. The NFL, MLB, NBA and Olympics all have broadcast agreements with broadcast (e.g. free) networks. If say the NFL were relegated to a sports package, not only would customers be livid (around 60 million people watch the NFL a week) but it would be stupid on the part of the NFL. Why would they jeopardize their $21 billion in revenue from NBC, CBS, ABC/ESPN and Fox just so they can earn a couple dollars from the NFL Network?