[opendtv] Re: CBS Offers Web Service as TV Unbundles Itself
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 18 Oct 2014 08:28:48 -0400
On Oct 17, 2014, at 8:36 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> I'll buy that this shows what "a la carte" could end up costing, but this is
> proof positive that the bundle is being unbundled. Something you keep saying
> will never happen. CBS is part of your "the bundle," and CBS is saying, I
> will go this one alone, in addition to staying with the bundle, for the
> hangers on.
1. CBS is not part of "the bundle." It is required as part of the basic service
for earthbound MVPDs (optional for DBS subscribers).
2. It is available FOTA throughout the U.S
3. As YOU pointed out, many of the programs the new service will offer are
already available via CBS.com and Hulu (free), and Hulu Plus (subscription).
4. The obvious target audience for the service is people who do not subscribe
to a MVPD service.
>
>> Not really. The markets where live streams are available are the
>> markets where CBS owns the stations. Moonves has not extended the
>> right to stream CBS programming to affiliates.
>
> That's the plan. Check back again, Craig. Yes, affiliated stations, a growing
> number of them. Here are the actual words:
>
> "Subscribers will be able to stream local CBS television stations in 14
> markets, including Chicago, Los Angeles and New York, with more affiliates
> expected to join. (People have long been able to watch broadcast television
> networks free via antennas.)"
>
Earth to Bert. These are all of the markets where CBS owns stations.
>> Why do you think CBS is losing viewers because of cord cutting Bert?
>
> Not so much viewers, but revenue. They are losing that second revenue stream
> because Disney and others are driving up the cost of cable. People then cut
> the cord. So, as I've said many times before, why can't these congloms sell
> direct, without having to make themselves vulnerable to the demands of
> competing congloms? And, that's what leads to the unravelling of the bundle.
>
Uhhhh. CBS is part of the content oligopoly that CONTROLS the extended basic
bundle.
To be fair, CBS did not build up cable network assets through the use of
retransmission consent, as did the other major broadcast networks, and their
brief liaison with Viacom - which was intended to beef up this part of the
portfolio - left CBS in a lesser position compared to the other members of the
oligopoly.
Obviously all of the members of the content oligopoly can and do sell content
direct, and to third parties. But this new service does NOTHING to threaten the
bundle business model.
The only REAL benefit of this $6/mo subscription is on demand access to the CBS
program library. Access to live streams in CBS O&O markets is nice for mobile
devices, but the content most people would use this for - NFL Football - is not
part of the package.
> And OTA does not offer as much as this site would. Here, you would get an
> entire season of shows, as well as classic shows, and who knows what else.
> Some of which is also available at cbs.com, except of course all those
> limited-capability TV boxes can't get cbs.com.
You just pointed out the real Achilles heal of the CBS strategy. They are
throwing stuff at the wall to see what sticks. But none of these efforts
threaten the core business model - get people to subscribe to an MVPD service
so they can generate that second revenue stream.
And as I said above, this is primarily a VOD play. Viewing shows from the
classic TV library is ad free. The promotional materials focus attention on
binge viewing. There is no long term commitment; you can cancel at any time.
It may well be that CBS hopes to get people to subscribe for a month or two
when they want to binge view an old series.
It is important to note that CBS All Access does not offer some of the
exclusive content available via FOTA antenna or a MVPD service. In essence they
are complementary.
>> Do you REALLY think that the cord cutters will pay $5.99/mo for
>> CBS content?
>
> Maybe, because most cord cutters have been brainwashed by the press, and even
> by the CE manufacturers, that to get TV without the cord, they need to
> subscribe to Hulu Plus, Netflix, or other pay sites. CBS has some of the best
> content out there. So they may well get some takers.
>
> But the main take-away is, CBS is breaking the bundle, Craig.
>
Wrong.
Regards
Craig
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