The Financial Times reports that American television will face a $2 billion lose in advertising revenue over the next four years due to competing video mediums.

American television used to have the undivided attention of viewers. Then came Tivo and DVRs that allowed people to record programing for later viewing during which they could fast-forward commercials. Then came online viewing. Viewers could now get their shows online without being bothered by pesky commercials. All this means a slump in ad revenue for broadcasters.

But the networks are not taking it lying down. They have offered their shows through OnDemand services where commercials cannot be skipped [there is nothing they can do about Tivo and DVR]. And they have worked to move online viewing from piracy websites to the network’s own sites that offer shows with commercials in between.

Hulu, a join project between Universal NBC and Fox, is a prime example as to how networks are adopting to a changing media landscape. The ad industry is changing too. Hulu, for instance, allows for personalized ads. For instance, if someone if watching The Fast and the Furious on Hulu the site will display an ad that will appeal to a man. While these personalized ads are profitable for the networks and the firms behind them, they still do not bring in as much money as ads on broadcast television.

That is why the network stand to lose a lot of money in the next few years. Some of that $2B will be made up through online and OnDemand ads, but for now not all of it. Eventually, though the advertising landscape will adopt. Ad dollars have nowhere to go but to the networks, but the adjustment period will entail some loses which may mean the previous ad revenue levels will never be reached again.

What will this mean for the big networks? Less original programing. T.V. shows require hefty budgets for cast, crew and writers. With less ad revenue expect more reality T.V. in the next few years.