Online TV can learn from gaming content model

Video gamers' fingers have been twitching with anticipation for the recent additions to the console market. When Playstation PS3s finally dribbled into American stores, enormous overnight queues formed and eBay went crazy.

Following its US launch, Nintendo's Wii sold at the rate of one a second for eight straight days. Wii launches here next week and PS3 next spring.

As we weigh the future of broadband TV, it is interesting to consider how content works in the games market.

It's a fascinating analogy.

Each console maker wishes to provide his customers with the best and biggest range of games. Some games have particular status, like Madden and Grand Theft Auto.

If stellar content like this is unavailable on a particular machine, serious users won't even consider it. But outside that must-have list, hardware owners work hard to line up exclusive content deals.

The broadband TV future will look similar. TV programmes will be marketed by a large number of online "shops", each competing to become our supplier of choice.

After an initial rush involving broadcasters, telcos, supermarkets, portals and community sites, the number of these will be thinned by consolidation - and the receivers.

Successful online TV retailers will have to offer range and, like the console providers, they will have to carry big brands such as Coronation Street and Planet Earth.

They will try and negotiate exclusive deals, but owners of must-have programmes have the upper hand and will insist that their shows are available wherever programmes are being bought and sold.

This will favour the big producers who can piggyback new or middling content on the back of their stars.

This is a very potent position for integrated companies like ITV.

It is why they should not bow to City pressure to sell off their production business.

The old cliche that "content is king" is true in the end, but at any time there is plenty of great content that is inadequately distributed. The existing broadcasters have a strong online position if they can secure A-list content, some of it exclusive, and then cross-promote audiences to it from their traditional channels.

This is an asset, not possessed by console companies, that today's TV channels should exploit early in this hugely competitive new world.

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