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“By defining the services as cable companies, they provide a path to finally change the way consumers get their television and cut the cord without losing out on key programming,” he said.

Mr. David pointed out that by classifying Aereo as a cable company the court in effect overturned a previous decision which outlawed a similar service called Ivi. Ivi delivered broadcast television over the Internet and sort to pay a minimal royalty fee for the privilege.

The court at that time said that Ivi was not a cable company. Mr. David said that FilmOn is finalizing the certification process for qualification for this fee and that the company will soon be able to provide local network TV service in the 18 cities it is active in.

The owner of the nation’s largest cable operator has begun preliminary discussions with both film and TV studios and other leading Internet service providers about employing technology, according to sources, that would provide offending users with transactional opportunities to access legal versions of copyright-infringing videos as they’re being downloaded.

The new approach would be an alternative to the Copyright Alert System, a voluntary initiative many leading programmers and distributors like Comcast have been utilizing since February. Other CAS participants include AT&T, Verizon, Time Warner Cable and Cablevision, as well as all studios affiliated with MPAA.

Using pirated content as a platform to drive legal transactions reflects an alternate philosophy regarding copyright infringement, one that sees the illegal activity less as a crime that requires punishment and more as lead generation to a consumer whose behavior is borne out of inadequate legitimate digital content options.

or Internet-based TV to be a competitive option, it either needs to be cheaper than cable and satellite or it needs to provide the content that subscribers want in a better way.

For the companies still working on Web TV, it would mean charging less than traditional competitors for a service while paying more than traditional competitors to offer it.

for a Web TV offering to be truly Web TV, it would need to offer all the channels consumers want alongside the "over-the-top" video capabilities like Netflix and Hulu that they associate with Internet viewing.

Media companies also want to gather and crunch all the data about viewing habits they can to sell to advertisers. The companies receive less high quality data when people watch network programming through an app from Dish Network or DirecTV instead of using their own apps.

"Both sides are paranoid. The operators think that if the programmers can create a one-to-one relationship with the consumer, some day they peel off and become their own HBO," said an executive at a media company involved in content negotiations who was not authorized to talk to the media.

Ad sales on the platforms are still small and hard to estimate, but revenue is expected to grow as more viewing moves to mobile devices

The Advertising Platform Formerly Known as Mass Media Advertising communications channels have always offered their audiences a value exchange. For instance, TV provides entertainment experiences in return for advertising and indirectly a cable fee, magazines present an edited cornucopia of material on a selected topic in return for a cover price and advertising.

Social media and digital advertising are currently testing the limits of their value exchanges by expecting consumers to provide specific information about themselves or their behaviors, which the digital properties can subsequently leverage in targeted advertising.

now younger consumers’ growing sense of entitlement gained in the digital world (where information was often offered at low or zero cost) is shifting across all channels. We only have to look at the emergence of TV cable cord-cutters or the growth of services such as Bit Torrent for evidence of this. Bit Torrent has increased its audience by over +70% in the last two years to a monthly audience of 23 million users.

SVOD providers are particularly problematic for broadcasters and their advertising partners, because they hurt ad supported television in a number of ways: Consumers with SVOD subscriptions replace time spent watching ad supported television with ad free SVOD watching With so much of online video viewing time spent watching ad free, those quality ad opportunities that are available are more expensive to buy Consumers get a decreased tolerance for advertising as they grow used to seeing content uninterrupted.

U.S. ad agencies spent 2% less on broadcast TV networks in the 4th quarter of 2014 and 16% less on national cable TV. The company also found that, if you exclude the Olympics, broadcast ad revenue would have declined 2% for the full year (it increased 4.1% when the Olympics are included.)

online originals are growing prodigiously and a good proportion of that inventory will provide advertising opportunities. For example, Alex Carloss, YouTube’s head of original programming, announced the site would be funding more original programming in the same way it did in 2012.

“TV and video content providers such as cable companies have a great opportunity to target heavy users with social TV in order to reduce potential churn,” said Michael Gartenberg, research director at Gartner. “The time to take advantage of this opportunity is right now as social TV services have not yet been dominated by a single solution and the market is far from saturated.”

Connected TV will open up access to a much wider range of content via the Internet, opening the possibility of worldwide video sharing.

ideo influences consumers the most when considering a purchase – up more than 20 percent – banner and search advertising continue to decline. Less than 50 percent now find paid search influential when making a decision, down from about 60 percent during the past three years.

Significantly, 14% of consumers used their tablets to search for content and engage in social media directly related to the television program they were watching. 

The findings present an opportunity for broadcast and cable networks to interact with consumers much more readily and immediately than they have in the past,

Among devices, the PC/laptop is still the top device used for these “over-the-top” (OTT) services with 65% of respondents using them to watch video content (up from 59% last year). About a third (31%) said they did the same on a mobile phone (up from 24%), while 22% said they used a tablet (up from 14%). Tablets and PCs are the preferred devices to watch longer-form video (such as movies or TV shows), according to the survey. 

There is growing consensus that traditional media, particularly TV, need to learn lessons from this. "YouTube is beginning to behave like a market leader," noted Elisabeth Murdoch in her 2012 MacTaggart lecture. "Believe at your own risk that their platform is based on homemade videos of cats in washing machines… Brands and talent are using YouTube to create direct-to-consumer relationships. Michelle Phan is the world's most popular make-up expert with over 600 million views. Yes – that's equivalent to a global Olympic audience generated by a 22-year-old putting on Lady Gaga makeup."

I'm a professional. If you expect me to jump at the opportunity to do something for free, like you're doing me a solid? No." Perhaps the scariest part of that comment for the old media is that these twenty-somethings know Jamie Oliver best for his supermarket advertising.

Cable television offers hundreds of channels, while YouTube gives us potentially millions from a global pool. The second is that technology now provides more versatility for watching content from the internet. For copying the tips from a make-up video, you might choose to use a smartphone in the bathroom; you can watch vlogs in bed on a tablet; for longer, more stylised productions, you've still got the big screen.