TV in search of a new model
December 30, 2009 — Abigail Hamilton
Andrew Vanacore’s interesting piece running in the Huffington Post and in the Seattle Times today about the endangered state of free TV really underscores how direly TV needs a new model, as ad revenue erodes and viewership splinters.
The business model is unraveling at ABC, CBS, NBC and Fox and the local stations that carry the networks’ programming. Cable TV and the Web have fractured the audience for free TV and siphoned its ad dollars. The recession has squeezed advertising further, forcing broadcasters to accelerate their push for new revenue to pay for programming.
That will play out in living rooms across the country. The changes could mean higher cable or satellite TV bills, as the networks and local stations squeeze more fees from pay-TV providers such as Comcast and DirecTV for the right to show broadcast TV channels in their lineups. The networks might even ditch free broadcast signals in the next few years.

