[opendtv] Re: ESPN Scores Top Audiences in Cable History with Semis | Multichannel
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 8 Jan 2015 08:20:34 -0500
On Jan 7, 2015, at 9:10 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> So is Netflix, Hulu, and all the other OTT sites.
THANK YOU BERT,
> The point is that it's not "the bundle." That's what OTT sites offer that's
> different from the MVPD model, Craig. More choice of different bundling
> options, and availability to anyone with a broadband connection (in the US).
Yes, this is understood. We have discussed this since Dish announced its
intention to offer a slimmed down bundle many months ago. The only real news is
how slim it is. They are still negotiating with most of the networks - it looks
like they are having trouble finishing up the package and that it will require
several add on bundles to get a slimmed down package that is useful.
Let's see how this plays out and if it gets any traction. It clearly does not
replace "the bundle" for families, as it only allows one user at a time. It is
targeting Millennials, so let's see if they are willing to sign up for a
slightly reduced cost bundle.
The good news here is that it could put some pressure on the facilities based
MVPDs to offer some choice in their bundles. We will have to wait and see if
this happens.
>
> As to the price point, if the estimates are valid, then $20/mo for ESPN is
> about right. The SI article said that about 1/3 of subscribers to the MVPD
> bundle actually care about ESPN. If that's true, and ESPN costs all bundle
> subscribers about $6/mo, then you'd expect an ESPN-only site to have to
> charge about $18/mo.
It's not going to happen Bert. ESPN is too important to the whole concept of
bundling to go direct to consumer. The fact that it is the anchor of the Dish
Sling service should tell you that.
Obviously, there is a possibility that someone will introduce a slimmed down
bundle without ESPN. If this happens, it will take a very large number of
people switching to such a service before ESPN changes its business model. And
remember, it's not just ESPN, there are multiple Disney networks included in
the Sling service. Ultimately, it will be up to Disney to stop forcing VMVPDs
to take ESPN if they want the rest of the Disney line-up, including ABC.
>
>> Not even close to ESPN ala carte. It IS a shaved bundle.
>
> Pretty darned close, I'd say. The other 11 or whatever channels must not be
> demanding a lot. See above.
I would guess that the cost for the Disney owned channels is comparable to what
other MVPDs pay. This has been the case with DBS versus cable, and I see no
reason that any of the content congloms would accept less; likewise, because of
the FCC access rules for multichannel content, they cannot charge VMVPDs
significantly more.
> And by the way, the opposite package from these would be the very slimmed
> down new MVPD bundles, designed recently to compete against Netflix, which
> offer essentially the broadcast networks + HBO only. Although, compared with
> this Sling TV, at a considerably higher price.
You still do not understand the HBO strategy. You have always been able to get
basic cable and HBO. HBO has ALWAYS been a premium tier unto itself, as is the
case for Showtime, Starz, etc.
HBO has no choice but to develop an OTT version to compete with Netflix. But
this does not mean they are abandoning the streaming service tied to HBO Go for
ZmVPD subscribers.
>
> Not even close. TVE duplicates the legacy MVPD scheme, whereas this amounts
> to a new OTT site, which happens to include the one most stalwart of all
> MVPD-dependent networks, ESPN, and live to boot.
No Bert, TVE is the Internet migration strategy for networks that choose to
stay with the MVPD bundles.
We don't know what Sling is just yet. Clearly it is Internet only. It will
likely offer a access to VOD libraries like the other authenticated OTT sites.
What may be different is the front end, which appears to be controlled by Dish.
the TVE sites are controlled by the networks that run them; this allows each to
develop their own front ends.
Ultimately it is the user interface, and ease of use that may differentiate OTT
services. It is still too early to tell how all of this will play out. You have
major competitors including Amazon, Apple, Sony, Google and Comcast who are
likely to offer VMVPD services. Let's see how this plays out.
>
>> I still can't comprehend why Bert does not understand that
>> TV Everywhere is just a VMVPD service available to facilities based
>> MVPD subscribers.
>
> That's because Craig has been dependent on the MVPD model for so long that he
> can't comprehend what it means to be unwalled.
Bert. These authenticated sites are still walled - you must subscribe to a MVPD
bundle to access them. They are NOT making this content available to unwalled
competitors or on their own for free. And please do not try to tell us that
licensing this content to other pay per view and walled services is something
new.
> Whereas, as someone who used FOTA in the past, I see the unwalled Internet as
> being the FOTA model expanded to the nth degree. And I see such brand new
> offerings as this one to be just what one would expect, when the Internet
> medium becomes fast enough for TV content distribution.
Very little of what is happening on the Internet is comparable to FOTA. You
have Hulu, and the network portals that offer some shows for free (ad
supported). But Netflix, Amazon Prime, Hulu Plus, CBS All Access, and many
others are just new walled gardens using the Internet for distribution. And
Amazon, Apple, Google and others offer Internet sales (the Digital HD window)
and pay-per-view.
>
> When you are not beholden to one monopolistic content distribution pipe, you
> will see any number of such new alternatives pop up. How amazing is it that
> it happened the **day after** Craig's list of questions?
Not amazing at all considering it was announce last summer, and the offering
came up short of that announcement.
The content owners have not been beholden to one pipe for decades. The Internet
just expands their options.
Regards
Craig
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