The Internet and Improved On-Demand Technology

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The Internet has further transformed the way we watch TV and has fueled convergence of the different technologies. For example, many people now have access to the Internet through their cable companies. On the Internet, we can download traditional TV shows and watch them on computer monitors, iPods, or cell phones—for fees of around $2 to $3 per episode. On some Web sites like hulu.com, full episodes are available for free (with ads) for a limited time, with more programming and viewing options offered through the fee-based Hulu Plus. In addition, cable TV giants like Comcast and Time Warner are making traditional network programs available as part of their video-on-demand (VOD) services, through which we can buy TV shows and watch them when we want. (See also "Converging Media Case Study: Television Online".)

Hulu.com allows viewers to watch TV shows, both current and old favorites, for free, and is supported by ad breaks before and within the shows. Some networks, however, do not place their shows on Hulu right away or at all, hoping viewers will tune in live or pay to download episodes.

As a result, television programs are no longer restricted by network scheduling, which for many years meant that to watch a particular show, viewers needed to be in front of their television sets at a particular time and on a particular day. Now, TV ratings try to account for "timeshifting"—a process facilitated by VOD and DVRs that allows people to watch a show outside of its broadcast time slot. Timeshifting data can reveal fan loyalty to particular shows that might not have been noticed in the past, but it presents other problems for broadcasters. Streaming, digital recording, and on-demand programming can limit the exposure of advertising; viewers can fast-forward through the ads in a matter of seconds, or open another browser window to ignore even the shorter ad breaks included in many streaming broadcasts.

The Internet has also opened the door to alternative forms of TV programming. Web series like Quarterlife, The Guild, and Web Therapy take advantage of the Internet’s ability to showcase short-form programming. Some online series have made the jump to cable television; the absurdist comedy Childrens’ Hospital, for example, moved to Cartoon Network in 2010.