it would make a BOATLOAD of money for both the networks and the operators.
Only if by "boatload" you mean one of those little toy boats that floats in the bathtub. Last year, NBC, the lowest rated broadcast channel, reported $4.2 billion in ad revenue (which represents a substantial decrease from the year before). At the top end, CBS reported $6.3 billion in ad revenue. (Source: http://adage.com/article/mediaworks/2010-rebound-broadcast-t...)
HBO clocked in at just over $1 billion (estimated, final numbers pending) in revenue for 2011. (http://www.hollywoodreporter.com/news/hbo-top-1-billion-inte...)
In order for a la carte to generate the same amount of revenue for a single broadcast channel, at say, $2/month, NBC alone would need 175 million subscribers, while HBO would need nearly 42 million subscribers (or roughly 1/2 again its current subscriber base).
It's not an ego game, it's basic arithmetic. Internet streaming may be the future, but it won't be the present until it gets a lot more expensive.
They wouldn't have to remove advertising, just become more creative. An easy solution is to keep advertising embedded in the broadcast and offer a premium option where all ads are removed for a greater cost.
Only if by "boatload" you mean one of those little toy boats that floats in the bathtub. Last year, NBC, the lowest rated broadcast channel, reported $4.2 billion in ad revenue (which represents a substantial decrease from the year before). At the top end, CBS reported $6.3 billion in ad revenue. (Source: http://adage.com/article/mediaworks/2010-rebound-broadcast-t...) HBO clocked in at just over $1 billion (estimated, final numbers pending) in revenue for 2011. (http://www.hollywoodreporter.com/news/hbo-top-1-billion-inte...) In order for a la carte to generate the same amount of revenue for a single broadcast channel, at say, $2/month, NBC alone would need 175 million subscribers, while HBO would need nearly 42 million subscribers (or roughly 1/2 again its current subscriber base).
It's not an ego game, it's basic arithmetic. Internet streaming may be the future, but it won't be the present until it gets a lot more expensive.