TELEVISION AND THE INTERNET
The Web Impacts Content and Audience Levels

by Bill Goodwill
Published in October, 1998 Broadcast Cafe Newsletter

Producers of television programming are increasingly turning to the Internet to deliver content that was once broadcast via standard TV sets. And there is evidence that more people are turning to the World Wide Web for getting news, weather, sports and local community information - content they also had previously obtained from TV.

To tap into the growing popularity of the web, CBS Corporation launched a web-based delivery system called “Network on the Web,” which offers viewers the best features of network television, accessible via the Internet.

While networks have already created site-to-site links between national and local content, CBS New Media has ventured one step beyond simple links to deliver an on-line combination of national and local content, integrated on one screen, creating a co-branded site and unique content between a station and its network. This allows each local CBS affiliate to localize CBS content and its placement, such as the Late Show and national breaking news, blending it seamlessly with local news, weather, restaurant guides and other programming. The content that the consumer sees will be generated based on the geographical area from which they access the site (http://www.CBS.com). This works much like the broadcast model where consumers access local affiliates of CBS news by turning on the appropriate local channel to access both local and national network news and programming. After accessing the CBS site, visitors key in their zip code and the software brings up the appropriate local CBS affiliate serving that particular area of the country. Presently 155 of CBS's 200 affiliates nationwide are on-line.

CBS Market Watch, an Internet financial site, CBS SportsLine, a leading on-line sports service featuring more than 200,000 pages of multimedia sports information, entertainment and merchandise are coming soon.

Unlike other Web offerings, which simply push central, untailored content to affiliates, the CBS approach allows a significant level of localization without the need for extensive Web development at the affiliate level. Using a database provided by the Oracle Corporation, the system provides a series of tools for affiliates, allowing them to log on to the system and easily add their own local content through a series of templates.This enables local affiliates to build a site tailored to their own local viewing audience while retaining the look and feel of a CBS affiliate, thus extending the CBS “brand.” All that is required to use the tools and customization application is a computer with any browser at the affiliate level.

Interactive Model

While initial tests of interactive TV, developed primarily by cable systems, did not seem to catch on with the public, the Internet adds a new dimension to interactive. IBM introduced a new system at NAB last year called Channel Hyperlinking that integrates data and video together. When an advertisement appears on TV for example, the viewer could click a button on the remote control and immediately jump to additional information related to the product or services being advertised.

NAB itself is also getting very involved with web development and has introduced a new on-line resource for members called “NAB WebSource,” an interactive guide designed to keep stations current on developments with the Internet that will affect the broadcasting industry.

NAB WebSource will feature interviews and articles each month for station managers, webmasters and sales staff. The site is designed to span the gamut of Web knowledge - from beginners to seasoned “webheads.” NAB members can access the site from the Members-Only section of NAB's Web site at www.nab.org.

Audience Impact

According to a new research study released by Nielsen Media Research, TV stations would be well served to invest in Internet delivery of program content because there are fewer people tuning in to TV. The study showed that “wired” households watch eight hours less TV per week compared to non-Internet households. Another study shows that a typical Web surfer visited the Internet an average of 9 days per month and that they spent over 8 hours per month on-line, which is an increase in the time spent over the previous study.

According to the Pew Research Center for the People and the Press, an estimated 36 million people now get some news from the Internet in a typical week, compared to 11 million who did so two years ago. According to the study, Internet users are also younger, better educated and more affluent than the population as a whole. Almost as many people now use the Internet to get news on a typical day as do those who read magazines, the study observed.

A positive trend for the TV industry is that the convergence of the Internet and television could expand audiences because more people will be able to access TV via their PCs while at work.

With Windows 98 and a TV tuner card in your personal computer, you can bring broadcast and cable television right to your desktop. This permits viewers to keep their eye on favorite programming while they work, or download information from the Internet while a person is watching TV.

The future for the Internet also looks very bright. In his keynote speech to launch Windows 98, Microsoft CEO Bill Gates predicted that 60 percent of all U.S. homes will have a PC in the year 2001 and 85 percent of those homes will be connected to the Internet.

Commerce on the Internet is also expected to rise dramatically in the years ahead. Total spending by individuals and businesses on related products and services will total $124 billion this year and soar to over half a trillion dollars in 2002, according to research conducted by International Data Group.