Abstract
This article examines the economic impact of Internet distribution on the television industry and the strategic implications for incumbent broadcasters. It shows that a useful way of grappling with the structural changes underway is to consider the changing nature of aggregation. Far from contracting, it is argued, the new supply chain for online television is extending as the aggregation function, broadly understood to encompass new activities performed by a whole host of new online video aggregators, is becoming more layered. The nature and scale of the threats facing incumbent broadcasters, and their strategic responses are discussed.
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