Post 88: How to pay for TV

Today, we all pay for the ‘free’ entertainment on TV every time we eat, drive a car, wash our clothes. You name a product, it pays for TV.

That’s because the cost of advertising is built into everything we consume. So a certain proportion of the price I paid for the pasta I will eat for dinner tonight has already been spent on advertising that went to the TV station that carried the ad which used the profits to make the shows I want to watch.

Nothing you didn’t know there? Thought so*.

The reason I mention this is that I wonder if that will change as the fallout from new media takes place.

Right now most of the media I want is available for free. In fact we gave up on Foxtel a while back. There just wasn’t much on.

But I can imagine in the near future, much more media will be available on a paid basis, either as downloads, DVDs or whatever.

So what I want to know is how TV gets paid for in the future.

I would rather pay for it upfront, frankly, and see the price of groceries drop. There is little chance of that happening, however, given that even if TV stations lose their silly role as content distributors and lose their ads, the ads will just go elsewhere.

Does that mean Google ends up paying for TV? No wonder everyone wants a piece of Google.

* Yes. I do know it’s a bit more complex than this, but the food pays for TV argument works even if you do not consider the fact that shows get bought, sold, outsourced and whatever else.

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