[opendtv] Re: Distribution outside of "the bundle"
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 9 Dec 2014 07:45:01 -0500
> On Dec 8, 2014, at 8:41 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
> wrote:
>
> Everyone knows that, Craig.
It would appear you did not.
> The point of the Amazon "season pass" is that it's used to keep up with the
> season without an MVPD subscription, without waiting until after the season
> is over, outside the garden walls, without subsidizing ESPN, for a
> not-astronomical price. So continuing to repeat irrelevant older options that
> everyone has known for years and years, and failing to acknowledge the newer
> scheme, gives the impression you're still not getting it. Are you still not
> getting it?
There is nothing to get Bert.
The option to BUY programming outside the bundle has been around for decades.
The only thing that has changed (since 2005 is that you can buy the current
season the day after it airs.
Speaking of astronomical prices, you can get analog cable (SDTV) WITH the
extended basic tier for about $50/mo. So buying your favorite shows from Apple,
Amazon or Toms, can be quite expensive - you could watch about 22 shows a year
for the same price. That's about 286 hours of content (that's being generous as
the actual length of a one hour show without ads is typically about 45
minutes). The typical viewer watches more than 100 hours of TV a month, so what
are they going to watch the other 9-10 months of a year?
You may not find any compelling value in a MVPD service Bert, but it still
provides a very large amount of content for the price. Buying ala carte may be
appealing to some viewers who don't watch much TV, but it is not cheaper!
>
>> The main exception is TV Everywhere,
>
> TVE is irrelevant to this. TVE requires MVPD subscription, therefore it's
> nothing new other than the delivery protocol. Prices continue to rise
> quickly, even with TVE, and you're still having to subsidize sports, even
> with TVE. Look at the subject line once again. Do you see why TVE is
> irrelevant to this subject?
No Bert it is absolutely relevant. It is another way to watch your favorite
shows on YOUR schedule, on the device of YOUR choice, without paying more. And
I have cited numerous articles that tell us this is the future; remember John
Malone and "TV is moving to random access?"
So I looked at the subject line again. And much of the content I watch is not
available outside the bundle. I could cut the cord and get by with Netflix and
whatever is available free, like the stuff you watch, but I would be forced to
give up much of what I want to watch. Keep in mind, I rarely watch episodic
television, so it is of little relevance to me that I can stream this stuff
with ads, or PAY for the shows I might watch.
>
>> And yes, evolving technologies allow for the creation of new
>> business models, which in many cases disrupt dieting[?] business
>> models.
>
> Finally! Why does this have to be so painful?
It's not painful. It has been going on in the TV business for my entire life.
The content congloms have adapted to evolving technology, sometimes with a bit
of reluctance. And with each step in this process they have increased our
options, EVEN AS THEY INCREASE WHAT WE PAY.
There is nothing going on here that is going to threaten the profits of the
content conglomerates. As the article Monty just posted stated:
> On one hand, the streaming service has added billions of new dollars into the
> television business in recent years, building up its offerings by licensing
> programs from TV groups. But as Netflix increases its total number of
> subscribers, some analysts and industry executives are starting to voice a
> concern — that a steady rise in streaming is fueling the deterioration of
> traditional TV audiences and related ad revenues.
These technologies are changing the way people watch TV. There is no question
about that. And yes, the content congloms must adapt to these changes,
especially in the face of declining ad revenues.
What did Ted Sarandos of Netflix say?
> Rather than debate what is driving that change, established television
> companies should change their business models, Mr. Sarandos said. As an
> example, he said that cable operators should invest in new technologies that
> would allow people to watch TV episodes weeks after they have been broadcast,
> but allow advertisers to insert up-to-date commercials.
This is EXACTLY what I have been saying Bert. For pre produced content
consumption is moving to VOD. There will be ad supported services, most likely
as part of the MVPD bundles, and ad free SVOD services like Netflix and Amazon.
>
>> Did you read the CTAM article I posted?
>
>
> "For cable operators, it's a simple problem with a maddeningly complicated
> answer: How to let paying subscribers know they already have access to
> favorite shows on favorite devices?"
That's the whole point of the CTAM article Bert. Educating their customers
about TV Everywhere, and negotiating with the content owners to make ALL of the
content offered by the MVPDs available via TV Everywhere. Put this together
with what Sarandos said and you will understand that the future for the MVPDs
is TV Everywhere, as viewers choose VOD over live streams for pre produced
content. But the live streams will still be important for content that people
will make appointments for, like sports or a show they follow closely.
>
> People p*ssed off at the increasing MVPD prices won't be appeased for long,
> with such measures, no matter what they might answer in a survey. The point
> lost here is that to many millennials, this is a non-starter. They don't want
> to be roped in, when using an Internet that they know full well is the
> antithesis of walling you up. So, as unwalled alternatives emerge, that's
> where they will go.
Perhaps. But they will still be forced to buy content from walled in services
like Netflix....
Or just steal the content.
>> The bundle and "other" paid methods of distribution are NOT
>> mutually exclusive Bert.
>
> Listen to your own words, Craig. I never said they were mutually exclusive,
> YOU DID. Moving current, fresh content, either totally undelayed, on with
> just a VOD-expected delay of a matter of hours, outside of garden walls, is
> the change. Including HBO, btw. To compete, HBO is having to exit the garden
> walls. The "other paid methods of distribution" you keep giving as examples,
> which involve significant delays, are old hat and beside the point.
HBO is not moving outside the garden walls Bert. They are working with the
MVPDs to create a new walled garden for cord cutters, who will still rely on
the broadband service from the ISP. Just semantics.
Regards
Craig
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