As massive batches of viewers, particularly young ones, give up watching traditional TV, the broadcasting business is rapidly crumbling. For television news stations, that is a very bad omen.
When direct-broadcast satellite provider Dish Network launched Sling TV in February last year, it was eying those swathes of viewers able and willing to pay for television, but not the fat bill that pay-TV companies send their subscribers at the end of the month. For a monthly fee of US$20, Americans can access a bouquet of TV channels anywhere and on any device through Sling TV, including mobile devices and computers. They don’t have to install a hulking antenna or satellite dish on the roof of their house.
In mid-April 2016, Dish Network threatened that it would cut its viewers’ access to the cable channels operated by Viacom. Dish Network was reportedly irked by requests from Viacom for an unreasonable increase (“millions of dollars,” according to Dish Network) in fees for carrying Viacom-owned channels such as MTV, Comedy Central and Nickelodeon in spite of the decreasing audiences of these channels. In the end, they reached a deal.
The Sling TV venture and Dish-Viacom tussle are more than business as usual. They epitomize the jouncy ride the television business is having these days; not only in rich markets like the U.S., but increasingly, everywhere. The reason: consumers, particularly ballooning young audiences, have stopped watching the television diet fed to them on TV sets.
That is good news for some of the fast-growing online video providers. But for the television news industry, it practically means its demise.