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Google Fiber News: Online Video Soars As Traditional Broadcast Collapses

Here’s one more reason the increasing presence of Google GOOG -0.47% Fiber is good: access to blistering fast internet is spurring the demand and purchase of Video On Demand (VOD), while the audience fortraditional broadcast television collapses. While the impact is evident in the first regions Google Fiber touches directly, the reverberations may spur the entire industries of broadcast and communications to evolve more rapidly than analysts had previously thought.

As early reviews of Google Fiber emerge from Kansas City, one of the most notable outcomes is the way gigabit speed makes services like Netflix NFLX -0.97% irresistible.

Demand for VOD is growing even more quickly than analysts expected, as traditional broadcast audiences shrink and the market for traditional broadcast content implodes. As consumers spend increasingly more time on their mobile devices, revenue from broadcast advertising has suffered. Broadcasters have cancelled 18 programs from the 2012-2013 season so far, according to Entertainment Weekly.

Google Fiber is influencing the change both directly and indirectly. Early users in Kansas City report that instant access to video content, without buffering, has been one of the network’s most appealing aspects. The advent of Google Fiber TV for ipads is an interesting development for early Google Fiber users as well.

Google Fiber’s influence is impacting other carriers as well: within a week of Google’s announcement of expansion to Austin, Texas, AT&T T -0.3%announced a 1 Gbps plan for Austin and Time Warner Cable TWC +0.27% announced new city-wide wireless service for its Austin customers. Google Fiber is also spurring “mom and pop” providers to hasten their pace in developing the infrastructure to provide faster connectivity to more “last mile” locations, according to Wired. They are moving faster than before, Wired says, knowing their access to traditional funding will tighten as the possibility of Google Fiber approaches. Some, such as Wicked Broadband, in Lawrence, Kansas, are even eyeing the possibility of eventually leasing a portion of the extra fibers it installs to Google some day.

For any business in the Google Fiber vicinities, access to 1Gps speeds will allow them to accomplish every task more quickly. SaaS businesses, resource-intensive software, and any function that relies on uploads and downloads will reap an immediate benefit.

For communicators, however, the impact may prove to be still more profound as Google Fiber speeds the migration of video and broadcast programming onto the web.

Where will your business advertise? Where will you engage with customers? Where will your development dollars be invested? In Utah, we are extremely excited for the benefits we anticipate the Provo, Utah network will bring to our local business community. But regardless of the time it takes Google Fiber to reach your own community directly, its impact may be changing the landscape of your business strategy even more quickly than you may currently think.