Could the writers strike, now in its second month and with no end in sight become a catalyst for a shift from OTA/Cable to online/IPTV?

There has been a drain in Ad revenues for premium programming and advertisers have been forced to compensate advertisers with cash (verses time). The trend has been one of declining viewership for OTA with a corresponding increase for Cable. In addition, revenue from OTA has been flat. Even if the strike were settled today, it would by some estimates take two or more months too ramp up production and inventory to offset the drain in revenues.

In the meantime, the Internet is not waiting. Shows like “Quarterlife” and sites like “MyDamnChannel,” “Funny or Die” are marching on. Some WGA writers are reportedly in talks with venture capitalists about funding their own online programming, which would bypass the studios model.

On the other hand, the traditional model is far from dead. Couple that with fragmentation from DVR’s, VOD and Place Shifting, i.e. Sling and there exists lot confusion on the part of the public how to make it all work in a lean back environment.

Also see; I'm Not Dead Yet

The sky has been falling on TV for a while now, see Business Week, so I would not short the stock for tradition Television just yet...