The iPod set the precedent. Once we’d tasted the untold joy of having our entire music collection at our fingertips, there was no going back. We began to get used to the idea of listening to what we want, when we want.

 

Broadcasters are starting to cash in on this trend, as the TV channels realise people will happily watch content online, and would rather watch a show when they're ready than when a channel decides to air it. As a result, online services such as BBC iPlayer and 4 On Demand have emerged to let viewers catch up on their favourite shows for free if they miss them. As the internet becomes increasingly mobile, so the appeal increases.

 

And now ITV’s getting in on the action. Codenamed Kangaroo, its site has been designed to screen programmes from the BBC, ITV and Channel 4 archives on-demand, but its launch has been postponed until 2009 pending an inquiry by the Competition Commission (CC). Competitors such as Virgin and BSkyB complained to the Office of Fair Trading (OFT) that, given their immense collective archives, Kangaroo could potentially charge unreasonably high prices to consumers, advertisers and competitors wanting to broadcast their shows.

 

But, while ITV locks horns with the CC, entrepreneurs should take a look at what they can do in this space. Ventures such as Zattoo and Joost, offering free TV online, are prime examples of business minds making money from the shift to online viewing.

 

Zattoo has managed to thrash out a deal with Channel 4, Channel 5 and BBC3, among others, to stream their channels (ads included) live on the web. Founded in 2005, it now employs 50 people and offers the service in a number of countries. The site shows a short ad before each programme loads, effectively monetising the site without giving the user the opportunity to ‘channel hop’ when the ads start. One of the biggest draws for broadcasters is the ability to reach a younger audience, Zattoo says. 84% of their users are between 15 and 44 years old, compared with 42% on traditional television. 

 

Similarly, while it’s clear the major broadcasters are trying to own the emerging on-demand market, that doesn’t mean there’s nothing entrepreneurs can do here either. British internet TV start-up Joost is a good example. While it complains it can't get access on a wholesale basis to some of the ‘best shows’ (the BBC reportedly refused to hand over its material, while discussions with commercial broadcasters were said to have ended in disagreements over price), it has still amassed a library of more than 28,000+ shows, with more added daily, through its streaming of more than 480 channels. 

 

There's no reason why content delivery has to be limited to what’s being produced by the major channels. Just look at YouTube. There is a market for ‘the long tail’, as Simon Calver, CEO of Lovefilm, calls it. Many people told him when he was starting up that consumers were only interested in renting new releases. Not so. Of Lovefilm’s 65,000 titles, he says 99% of them are on someone’s wish list.

 

Finding ways to allow consumers to receive content legally and in a way they feel represents good value will almost certainly be a money spinner. Given the choice, consumers will always opt to view or download online content legally – if they feel they’re getting good value. It’s virus-free and ultimately a much better product. The growth of digital media is only hammering the high street because it doesn’t offer good value in this sector. It's also opening up a vast array of new opportunities and business models as viewers make the shift online.