[opendtv] Re: TV Ratings Have Hurt Creative Side of Television, Says Netflix Content Boss Sarandos | Variety

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 13 Dec 2014 07:23:09 -0500

On Dec 12, 2014, at 9:33 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx> 
wrote:
> 
> Craig Birkmaier wrote:
> 
>> Sorry Bert, but a big reason that Netflix streaming got a foot in the
>> door was VOD. HBO was a live stream service until recently, when they
>> starting offering HBO Go as a TV Everywhere alternative.
> 
> No, Craig. I wouldn't keep repeating that major objection I have, concerning 
> your ideas on why Netflix is popular, if that were the case. So, please check 
> your facts when you see these disconnects:
> 
> ------------------
> http://en.wikipedia.org/wiki/HBO
> 
> HBO on Demand
> 
> HBO on Demand is the channel's subscription video-on-demand service, which 
> launched as the first subscription VOD service offered by a premium channel 
> in the United States on July 1, 2001 on Time Warner Cable's Columbia, South 
> Carolina system.[39] It offers a selection of movies, original series and 
> specials previously seen on the network. The service is provided at no 
> additional cost to HBO subscribers, who already regularly pay a premium fee 
> to cable and satellite providers to have access to the channel. By reducing 
> the frequency in which viewers were unable to find a program they would like 
> to watch, as well as limiting cancellations to the service for the same 
> reason, HBO launched HBO on Demand, allowing access to the channel's 
> programming on their subscribers' schedules. HBO on Demand features a 
> rotating selection of films, specials and series, with select new titles 
> added each Friday alongside existing program titles held over from the 
> previous one to two weeks.
> 
> The standard definition and high definition versions of the HBO on Demand 
> service are available on most cable and satellite providers, delivered to 
> customers who subscribe to the linear HBO channels at no additional charge. 
> On January 3, 2011, HBO became the first premium channel and the first cable 
> network to offer a 3D-only VOD service as it launched a subscription video on 
> demand service offering select feature films in 3D to Time Warner Cable, 
> Comcast and Verizon FiOS customers who subscribe to the HBO service.

OK, you got me on this. I know that this service existed on some systems, but 
was not aware it was widely available. Having never subscribed to HBO, I 
probably missed this.  And it does not negate the fact that the service you 
just described is only available via a cable STB - there is no comparable on 
demand service for DBS subscribers. Or to be fair, there was no such equivalent 
until HBO launched the TV Everywhere HBO Go service which Ian OTT service.
> -----------------
> 
> This is UNRELATED to HBO Go. So we are talking about a timeframe when most 
> users of Netflix were watching DVDs, not streaming. Netflix is simply an 
> alternative to HBO, one that many people found to be a good replacement value.

No argument on this.
> 
>> It might be a useful exercise Bert to ask yourself why the content
>> congloms are making their shows so much more accessible?
>> 
>> Could it be that there is no longer any reason to sit down and
>> watch live streams by appointment?
> 
> Doubtful, since VOD or time-shifted viewing has been possible for many years. 
> I already explained the reason, Craig. When people show willingness to bail 
> out of MVPDs, content owners HAVE to find new delivery pipes.

This is not an answer to the question. Why are the content owners making their 
shows so accessible, so quickly, after the original live screening. How they 
are doing this is obvious. A decade ago you may have had to wait six months to 
see the rerun. 
> 
>> Both of these options are available now, but people are still
>> using "borrowed" authentication credentials to avoid paying or
>> to see shows sooner.
> 
> So, The Walking Dead is available also in an ad-supported-only site?

Yes and no. The AMC website offers The Waking Dead with ads. Shows are 
available to MVPD subscribers immediately; these shows are available to anyone, 
weeks or months after they aired. I don't know the exact delay time, but you 
can go to the AMC site and see for yourself.
> 
>> And there ARE NO ALTERNATIVES for live sporting events that require
>> a MVPD service or authentication.
> 
> And I explained this many times too, as did some of the CEOs we have heard 
> from. Demand for live sports, baseball/basketball/US football, is basically 
> inelastic. Therefore, the owners of that content can set whatever price they 
> please. These guys are easy prey. They show no willingness to bail out.

Because they have NO a REASON to bail out. This is the blue that holds the 
extended basic bundle together Bert. This is content that people still make 
appointments to watch, which is highly valuable to advertisers. The live stream 
premieres of many episodic shows in the bundle are ALSO IMPORTANT.

You actively support the idea that people are still watching TV after they cut 
the cord. No doubt this is true. It is also true that the majority of homes in 
the U.S. Subscribe to the extended basic bundle, and watch exclusive content 
which you never see.

Regards
Craig
 
 
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