[opendtv] Re: ScreenPlays Magazine: HBO’s OTT Move Sends Wake-Up Call to MVPD
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 23 Jan 2015 08:50:55 -0500
> On Jan 22, 2015, at 9:10 PM, Manfredi, Albert E
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> Pfffft. No one disputes that some type of bundles will be used, Craig, as you
> well know by now. Hulu and Netflix are also "bundles" of sorts. But when the
> medium is unwalled, as I've said many times, you can no longer expect these
> almost identical, monopolistic, MVPD tiers and bundles to move to the OTT
> sites.
Why not?
The extended basic bundle is the staple of Pay TV in the U.S., with at least
80% of homes. We all agree that the trend is to Internet delivery of TV
content, so why is it difficult to believe that a sizable percentage of the
homes that now subscribe to the extended basic bundle delivered by coax and
satellite will not migrate to similar bundles delivered OTT?
>
> Of course, the TVE last-gasp-attempt-at-preserving-walls does attempt this,
> but clearly Piepler and even Skipper have moved beyond. They are no longer
> insisting on remaining in that walled-in straightjacket.
TVE is not a last gasp effort - it is part of the migration strategy. I just
posted a story about NBC using Super Bowl Sunday to promote their TVE portals.
Skipper (ESPN) has not moved beyond the extended basic bundle - the Dish Sling
service is a slimmed down bundle with ESPN, but it is still a MVPD bundle, and
by the time all of the core programming and mini bundles are worked out, it may
not offer any real advantage over facilities based bundles...
Other than the FACT that it will be all TV EVERYWHERE, ANYWHERE.
And Piepler has been absolutely clear that he does not expect the new HBO OTT
service to cannibalize the traditional MVPD services. Another article I just
posted, based on a survey by Parks Associates, indicates that HBO hopes that
existing MVPD subscribers who do not take the premium linear HBO service may
subscribe to the OTT version, just as many of these homes now subscribe to
Netflix.
> I read that "moving beyond TVE."
Of course you would interpret it that way, as you do not want to accept it for
what it is...a migration strategy. Obviously TVE is an unfinished product. Many
content owners have not licensed TVE rights, and many of the existing services
are still in "beta."
Once again:
> All of these developments point to the need for MVPDs to get their arms
> around development of broadband pay TV business models that provide consumers
> a better option than a la carte, not only cost wise but experience wise. This
> starts with leveraging their latitude under existing TV Everywhere licensing
> models to create a far superior online experience compared to the ones
> currently on offer from operators and individual programmers.
TVE is still in Beta Bert; it is growing and improving.
> Which is what it is, and why he says "starts with.". Sling TV with ESPN moved
> beyond TVE (i.e. totally different bundle formula, and accessible to anyone).
> HBO direct moves beyond TVE. The MVPDs THEMSELVES, as I've said on multiple
> occasions, are perfectly positioned to move beyond TVE, and become their own
> universally accessible OTT sites.
Sling is what TVE will look like Bert. It is just OTT linear streams combined
with the TVE sites. The bundle formula may be different, but it is still a MVPD
bundle delivered via the Internet.
HBO direct is just HBO Go (a TVE service), without the linear MVPD version.
The facilities based MVPDs ARE moving to the Internet, using the TVE migration
strategy.
Regards
Craig
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