Television reshapes its economy as technology advances

Peter Pollack writes:

... For the short term, the position of the networks as content providers looks to be somewhat secure, even as the economic model of selling commercials during shows may be in for a body slam. Networks are slowly getting used to the idea of selling programs in various time-shifted formats and offering ad-supported downloads, but this new paradigm bypasses the network affiliate stations completely, and those stations have no desire to become unprofitable or obsolete. ...¶... However, the long-term outlook appears less rosy for affiliate stations. If time-shifted distribution via the Internet becomes the de facto method of watching television, local affiliates may find themselves with less to offer, and therefore less justification for a cut of the take. Fox has contracted with its affiliates to give them a share of the revenue from downloads, but other networks have been moving more slowly. ...

Link:  Ars Technica.