[opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 21 Sep 2016 04:04:33 +0000
Craig Birkmaier wrote:
Keep in mind that these small systems have higher capital and
operating costs to begin with due to their size and the population
density of the markets they serve.
Which only means, Craig, that they ran up against the stops sooner than the
others will. That's all. The trend lines have not stabilized or reversed, not
for content costs, not for prices to consumers, not for consumers bailing out.
That's key. But read on.
https://www.mediavillage.com/article/disney-nielsen-and-the-broadband-only-homes-pivotal-research/
Do the math Bert: 90 million subscribers / 116 million TV homes in
the U.S. = 77.5%
That number is much higher than your 68%, and I used 90 million, not
the 99 million Nielsen is claiming.
So strangely enough, your figure of 116M households comes from ca. 2007. Last
year, the number was supposedly 124.6M.
https://www.statista.com/statistics/183635/number-of-households-in-the-us/
In any event, the more important point is the continued steady decline in
subscribers to different channels. They claim from 2% annual decline, for
"typical networks," to 3% annual decline, for ESPN. Through a combination of
cutting and shaving. The trend lines I alluded to above are still there, and
ultimately can't help but catch up even with the bigger cable companies. For
legacy MVPD service, that is.
Nice, but meaningless without context. What percentage of new cable
subscribers are taking both broadband and video, not to mention the
triple play bundles with phone service?
Mostly meaningless, perhaps, until you consider that cable companies are making
super aggressive intro offers. No matter how small the legacy TV service bundle
might be, it still creates bloat in the Nielsen MVPD household figures, and
more importantly, ain't paying for itself! You know that can't be sustainable.
E.g., Verizon offers 50 Mb/s Internet alone for $49.99/mo and 2-year contract,
and that plus local TV, and NO annual contract, for $50.00/mo. That's one penny
more for TV, and no annual contract. How does that even pay for local
broadcaster retrans consent?
Or 100 Mb/s Internet alone with 2-year contract for $59.99/mo, and that plus
"custom TV," and NO annual contract, for $64.99/mo. Even that cannot pay for
local retrans consent, let alone the other channels of this "custom" bundle.
The math is simply not sustainable long term.
http://www.verizon.com/home/bundles/fios/
The tide is toward broadband service.
Of course it is Bert. Nobody is disputing THAT trend. And for obvious
reasons:
1. The umbilical services - cable, FTTH and DBS - only allow access
on devices used in the home. Broadband allows access to the content
on the umbilical anywhere you have Internet service.
2. Live streams do not allow for time shifting unless you preplan
3. We are already seeing more competition and customization of MVPD
bundles via broadband
Uuuh, surely you must know that people buy Internet broadband service for more
than just your legacy MVPD bundle content, Craig? The tide is to Internet
service for a bunch of reasons, and an important one is to get OTHER THAN the
legacy type of TV content and service. But this isn't just about TV. Internet
service has become essential, more like telephone was. You can't pretend the
Internet is just embellishing your legacy service. The evidence is to the
contrary.
Left to their own devices, they were already beginning to stifle
the self-regulating competition.
Didn't happen.
It started to happen, and got nipped in the bud, is the reality. But fear not,
because their Internet service is clearly more critical.
Bert
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Other related posts:
- » [opendtv] AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet - Manfredi, Albert E
- » [opendtv] Re: AT&T to Google Fiber: Suck it up, broadband is tough - and get ready to eat our dust | ZDNet- Craig Birkmaier