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

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 3 Feb 2014 21:14:05 -0500

Apparently their finger is stuck in the dam.  

Intel could not break the cabal… 

or cable?

Regards
Craig

On Feb 3, 2014, at 7:47 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx> 
wrote:

> 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
> 
> --------------------------------------------
> 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
>  
> Follow us: @digitaltrends on Twitter | digitaltrendsftw on Facebook
> 
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