As I get deeper into the changes impacting television and online video, their convergence, and the possibility of entirely new forms of video entertainment content, I'm thinking about content in the following categories:
Long-form professional video -- i.e., produced originally to be broadcast on TV
Professional clips -- news, sports highlights, scenes from programs
Short-form professional -- i.e., Maker Studios, et al, producing videos shorter than 30 minutes, specifically for Internet distribution
Brand videos -- i.e., content marketing done in video form, such as Home Depot's do-it-yourself instructional videos
Then there is the medium by which they are distributed:
Linear, i.e., at broadcast time
DVR, where the consumer takes control
VOD through the cable box
Online streaming, from either the cable/satellite provider, the programmer, or a streaming service like Hulu Plus
And, of course, there are the devices on which the content can be viewed:
After a month of haggling, snarking, and outright marketing war, CBS and Time Warner came to terms. While details were not disclosed (though this CNBC article has some intriguing hints) both CEOs -- Les Moonves at CBS and Glenn Britt at Time Warner -- had soothing words about how this agreement is good for everyone.
I think the winner is the future of online viewing.
Digital rights were the second biggest sticking point (after a roughly tripling of retransmission fees that CBS initially sought). Time Warner wanted a continuation of the 2008 contract, which gave them digital rights as part of the contract; CBS wanted a separate payment. In other words, in 2008, no one thought digital amounted to anything so CBS threw them in at no cost. Now both sides see enough value that they become worth arguing over. And by retaining digital rights, CBS is free to pursue that value by licensing its content to other services like Netflix, Amazon Prime, and is rumored to be talking to Sony for its yet-to-be-announced video service.
Prior to this agreement, CBS had no incentive to think about digital distribution because they had signed away the rights; Time Warner had little incentive because they didn't pay anything for those rights. They have dabbled with TV anywhere, but it was a sideshow to their real business of cable delivery of video.