I have argued before that the television industry would benefit from transforming its business model to enhance consumer engagement and adapt to new technologies. That is not to say that broadcast TV is in danger of disappearing (in fact a May 2008 Nielsen Report pdf found Americans are watching more traditional TV than ever) but DVRs, digital cable, and online video all make it increasingly difficult for networks to secure consistent viewers and advertisers. As a result, pilots, even beloved shows, either produce immediate results or face extinction. The system has become so reliant on statistics that a show whose viewership falls below 93% of its networks’ average viewers will be flat out NEXTed. (source: tvbythenumbers.com)
Wait a second. What about the people watching the show on DVD, on the Internet, or on mobile devices? How are they accounted for? And, if you’re like me, you don’t want to invest in a show when you know it’s likely to be abandoned without warning. But it is the nature of the business that a series won’t survive without the initial ratings. It’s a vicious cycle and breaking it would mean one of two things. Either audiences gain enough trust in the networks to risk their time and energy to invest in a new series, or the networks trust the audiences to improve the ratings of a show even after a poor start.
What we have here is what smart people call a Hegelian dialectic, the idea that the tension between two opposing forces is resolved through a synthesis. In this case, the tension between the networks’ old consumption expectations and the viewers’ new consumption habits has resulted in a new Hollywood experiment: web shows.