WASHINGTON - TiVo Inc., maker of popular digital television recording devices, on Wednesday received approval for technology that would permit users to send copies of digital broadcast shows over the Internet to a limited number of friends.
The Federal Communications Commission voted to certify digital protections on TiVoToGo, which is not yet available but would enable a user to record and send a digital broadcast television show to up to nine others who have been registered on that person's service and has been given a key to see it.
The approval came despite concerns by the Motion Picture Association of America (MPAA) and the National Football League about the risks of unfettered distribution of copyrighted shows and airing regional games outside of their market.
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www.reuters.comCocojambo Comment:
The risks to television advertising, posed by TiVo and its ilk, have been widely discussed. Unfortunately this attention has deflected interest from the greater risks that are posed to television itself by filesharing and TV-over-IP.
PVR technologies are a huge development for the TV industry: the functionalities of content 'pausing', 'rewinding' and 'slicing' will completely change the way in which audiences view television. However this is only part of a larger evolution that TV is undergoing.
The scheduled broadcast is no longer the only means by which audiences and consumers are accessing television programming: TV-on-DVD has become both a significant revenue generator and a channel for TV content (albeit one that is unproven in launching new programming). More recently, TV-over-IP has grown into a feasible rival to broadcast: a significant minority of consumers are now choosing and accessing their TV programming via the Internet and filesharing networks - the same minority that started to download music files in 1999. In the past 5 years this minority grew sufficiently large to throw the music industry into crisis, in the next 5 we will see a new crisis in the TV broadcasting industry as advertisers go direct to consumers.
The future of television will feature an open network where shows are published and quickly shared: Enjoyed Friends last night? Send it to your friends this morning. Only discovered 24 on the 5th episode? Go online and download the rest.
Missed Monday's Big Brother? Request it by email.
The traditional watercooler discussions ("Last night, did you see...?") will instead occur online as consumers post shows and clips direct to friends. The TV preview publications will suffer in competition to online social networks (akin to the recommendations on Amazon.com today).
Advertisers will continue to fund TV content, but not by traditional means. Only where there are opportunities to integrate their brands into the content, will advertisers reach into their pockets.
Content owners and broadcasters are not unaware of this future (as their objections to TiVo's new technology show) but stopping it will be beyond them.