Kym Niblock: Online TV a galloping force to take seriously

Orange is the New Black is on of the new shows that can be accessed on demand. Photo / AP

Opinion

The article by Liam Dann in the Herald on August 25, "TV war not so fierce in real world", caught my eye.

His premise was social change doesn't always keep up with the pace of technological change and therefore it is difficult to pick when something like internet TV will take off. Liam argued, "Any new trend can be extrapolated to its ultimate conclusion within minutes. Meanwhile, a large, conservative and valuable chunk of the public is much slower to change its behaviour."

He's right in one sense, but I found this quite a brave call, particularly given the catalytic impact of the internet. History shows disruptive forces usually overtake market incumbents in a relatively short time. Just think about companies like Kodak, Encyclopaedia Britannica and the Yellow Pages. Or even newer products like CDs, digital cameras, desktop computers, and the home telephone ...the list of legacy products being replaced is endless.

Those who fight the future often get run over by it. Those who embrace it at least play a role in shaping it.

This process isn't new but the pace of evolution is accelerating, driven by ubiquitous internet, smartphones and data-hungry applications. From AM radio, to TV, to the internet to mobile internet, the rate of adoption has accelerated. Just a decade ago, millions of people changed their music listening behaviour because of Apple. Digital cameras have been quickly supplanted by mobile phones with cameras. News coverage has transformed because everything can be published in real time on social platforms. People are fundamentally changing their relationship with technology in a very short period of time.

The reality is the future is coming at us faster than ever. Time flies while you're having fun - and on the internet time is rocketing. In one "internet" minute there are more than 6 million Facebook views, 20 million photo views and 1.3 million videos viewed. Yet, the platforms that allow that to happen have only been around for a decade. Imagine going back in time to tell Steve Jobs not to bother with iTunes because people liked CDs. Now Apple could buy Twitter and Netflix with its spare change. Disruption is real. The average time a business has been in the S&P 500 Index plummeted from 75 years in 1937 to just 15 years in 2011, and this is estimated to drop to five years by 2025.

There is a lot to agree with in Liam's article. We expect large numbers of New Zealanders will continue to watch their beloved (but expensive) pay TV. Much of the fantastic content remains locked away in the hands of those traditional providers and pay TV works well for many people. And many consumers don't yet appreciate there are now other easy-to-use and less costly choices available to them.

But look at the Google lesson in media advertising. In the 10 years since Google floated, its stocks have risen nearly 1000 per cent while publishing stocks have plummeted. Legacy media have struggled to build digital revenue enough to offset losses in print revenue.

For many digital natives and early adopters linear TV is already a relic, a thing of the past. Generations of New Zealanders often have multiple suppliers, so companies can't expect to be their only service provider. These customers are sharing their experiences with each other and participating in a global conversation about fantastic content - Mad Men, Breaking Bad, Orange is the New Black, Suits and more. And their parents are picking it up too which is why we made Lightbox free for the first 30 days so viewers can see how easy it is. The future is all about online content delivered on demand to devices of your choice on an anytime model.

Internet TV on demand is the inevitable destination. Some customers will continue to access illegitimate content through dodgy workarounds or pirate websites. Others won't come to terms with modern telecommunications. But many people are looking for ways to watch the TV they want to watch at a time that suits them - and they are happy to pay for a trusted service from an authentic supplier. That's where Lightbox comes in.

Internet TV isn't just coming. It's been here for some time and will only become more relevant to more people every day.

We are merely witnessing the inevitable and accelerating shift from early adopters, to digital natives and on to the embrace of the mainstream.

We're not betting against linear TV - we are betting for online TV. Lightbox is here to help guide consumers towards the future of television.

Kym Niblock is the chief executive of Lightbox.