[opendtv] Re: Digiday.com: What comes after HBO cuts the cord
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 18 Nov 2014 10:32:52 -0500
> On Nov 17, 2014, at 6:46 PM, Manfredi, Albert E
> <albert.e.manfredi@xxxxxxxxxx> wrote:
>
> Strike out your first obstinate response, and only leave the second response.
> So the answer is, finally, that the content owners do not see the old "the
> bundle" as the only way they will distribute their brand new content.
They never have. They have been selling their "used" content into syndication
markets
since the dawn of broadcasting. When I graduated from college the first
commercial station I worked for was still running syndicated shows distributed
on 16mm film, which I had to edit to make room for more commercials.
The networks have distributed most of the brand new content through
broadcasters; they still do. They are also using the Internet to capture part
of their lost appointment TV audience via their own web sites, Hulu, etc.
But more and more of the most valuable content is now inside the extended basic
bundle or being developed by new competitors like HBO and Netflix - I.e behind
pay walls.
In short, the content owners do not have one path to market - they have many
paths, with the price dropping as the content loses its ability to capture an
audience. This is one area where the Internet is HELPING the content owners -
they are getting big bucks selling old content to Netflix, Amazon, Apple,
Google, et al, for VOD access and binge viewing of old shows.
>
>
> But most importantly, related to "the bundle," note what it says at the end:
>
> "Will others follow HBO's lead?
>
> "Don't be surprised. HBO's push toward unbundling could pave the way for
> other premium channels to do the same, from competing properties like
> Showtime and Starz to other major players like sports giant ESPN, noted
> Brannon."
>
> Do you see any coy attitude describing a fundamental difference between "the
> bundle" as opposed to "premium tier bundles"? I don't.
First a minor apology. I did not see the reference to ESPN when I read the
article and said ESPN was not mentioned.
Second, ESPN is not a premium channel like HBO, Showtime or Starz. They are an
anchor for the extended basic bundle. Brannon is simply speculating about ESPN.
But Showtime and Starz will be forced to follow HBO.
And yes there is a fundamental difference between the extended basic bundle and
premium tier services. Tens of millions of viewers.
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