[opendtv] Digital Trends: ESPN may pull its finger out of the Internet-TV dam, unleash a flood of change

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 4 Feb 2014 00:47:51 +0000

Heh. Here's an article from last summer that addresses *even* online ESPN, for 
pete's sake. Here's an interesting quote:

"ESPN’s President, John Skipper, said today that an Internet TV provider would 
have to pay as much or more than cable and satellite services, and that in 
order to get ESPN, providers will have to buy up the entire suite of ESPN 
channels. 'We’re not going to offer one-offs,' Skipper said."

Perhaps, but the possibility of getting this holy grail sports programming 
online *without* MVPD subscription is what we're talking about here. And also, 
for those who only think about the unbundling angle, no indication that ESPN 
would be bundled with non-ESPN channels. And people who don’t want ESPN at all 
would now be able to opt out.

However, this article points out something else that Craig has a hard time 
accepting. If all you're interested in is "unbundling," a lot of effectively 
subsidized TV programs are likely to vanish. The article claims only perhaps 20 
channels would remain.

I have *serious* doubts about that. My bet is, perhaps only 20 glitzy and 
expensive programs would survive, but then you'd get a whole lot of amateurish 
content from sites like YouTube. No telling where this will go.

Bert

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http://www.digitaltrends.com/home-theater/espn-may-pull-its-finger-out-of-the-internet-tv-dam-incite-a-flood-of-change/

ESPN may pull its finger out of the Internet-TV dam, unleash a flood of change
By Caleb Denison — August 22, 2013

The news comes during a month already full of tumult for the TV industry. Last 
week, we learned that Viacom will offer some if its popular stations such as 
Nickelodeon and Comedy Central through Sony’s Internet-TV service. Meanwhile, 
CBS and Time Warner Cable (TWC) continue to wage their war in the public eye as 
TWC customers in the New York, Los Angeles and Dallas prepare to endure their 
fourth straight week of a CBS blackout.

That ESPN is entertaining the idea of distributing its channels outside of the 
cable/satellite networks indicates it recognizes that companies like Apple, 
Google, Intel and Sony are going to make Internet-based TV delivery a reality, 
with or without its involvement. But if ESPN does get on board with Internet-TV 
distribution, it may be enough to get any “on-the-fence” networks moving in the 
same direction, and potentially open the floodgates of change for TV 
distribution. But is this actually a good thing for so-called cord-cutters and 
advocates of a la carte TV?

ESPN is, by far, the most expensive cable channel around. Analyst SNL Kagan 
estimates it represents $5.54 of a subscriber’s cable bill. Compare that to 
approximately $.60 for CNN, and even less for something like the Lifetime 
Network. In fact, it is the bundling of ESPN with other, less popular channels 
that helps keep those channels afloat. Needham and Company recently released a 
report indicating that unbundling channels could be the demise of the TV 
revenue ecosystem, citing that about 50% of TV-related revenue would simply 
vaporize and estimating that only 20 channels could survive under an a la carte 
TV model. If every on-the-fence cord-cutter were to ditch cable and satellite 
service in favor of a few Internet-delivered networks, Netflix, and Hulu, then 
cable and satellite companies could wind up with nothing left to carry.

That could leave cable companies with little choice but to boost their 
broadband Internet service rates, potentially negating any financial benefit to 
cutting cable. And don’t expect any help from the likes of ESPN, either. ESPN’s 
President, John Skipper, said today that an Internet TV provider would have to 
pay as much or more than cable and satellite services, and that in order to get 
ESPN, providers will have to buy up the entire suite of ESPN channels. “We’re 
not going to offer one-offs,” Skipper said.

So if ESPN through Intel’s Internet-TV box or Sony’s Playstation 4 console 
costs just as much as a basic cable subscription, but comes with none of the 
extras cable provides, is it worth ditching your cable provider?

Read more: 
http://www.digitaltrends.com/home-theater/espn-may-pull-its-finger-out-of-the-internet-tv-dam-incite-a-flood-of-change/#ixzz2sJ9KjnVb
 
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