I had a what turned out to be a very expensive trip to a bar a few weeks ago. No, I wasn’t overserved nor did I need to cab it home from a remote location. It became expensive because I watched TV there. The picture was noticeably better than what I was used to and it turned out that I was watching a 4K TV with full High dynamic range, or HDR. Even though the program (a basketball game) wasn’t in native 4K, it was noticeably better. Once I figured out that DirecTV, my TV provider, has a few 4K channels and that some sports, including the upcoming Masters, are shown in 4K, I was hooked. I did some research and found that one of the top-rated sets was on sale (almost half price!) and two days later, and hundreds of dollars for the TV and a new DirecTV box that handles 4K, my viewing experience was upgraded.
One thing that I got along with the upgraded picture (even standard HD looks better) was a built-in Roku device. I’ve had a Chromecast for years and I also have my Xbox hooked into the TV. I have been using both for “over the top” viewing of streaming services like Netflix, Hulu, and Amazon. What has changed with the Roku is that all of these services and many others are available as channels on the TV. There’s no need to switch inputs or fire up another device as I have been doing. Which reminded me of a couple of things.
First, the lines between “TV” and “video” have vanished forever. One can argue that once consumers had remotes and DVR‘s they morphed into active programmers but with what is now the almost full integration of TV and OTT, making an unlimited amount of content available in high-quality video, it’s now all just TV. The second point, one which might apply to your non-media business, is that consumers don’t care about the tools or the labels. They do care about control since they now have complete control in many areas of their consuming lives, or at least a lot more than they used to. You can fight this (broadcasters did for years) or you can facilitate this, but hanging on to an antiquated business model is the wrong choice.
Disney will launch an ESPN-branded streaming service in a couple of weeks. Since to me and many others there is no difference between traditional TV and streaming video, it will be just another channel on my TV (hopefully in 4K). For many cord-cutters, it will be a nice addition to their programming options. Disney has learned that the tools (or channels) are immaterial and the business model needs to continue to evolve as do consumers’ habits. Have you?