On Sep 18, 2014, at 9:34 PM, "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx> wrote: > >>> So, you're satisfied with half measures. >> >> Satisfied? >> >> HELL NO, > > Of course you are, or you wouldn't stay stuck with it. Cord cutters exist, > and yet you insist that adding IP streaming to the bundling model of MVPDs is > "enhancing" something. Not for the cord cutters, right? Marketing babble. Yes cord cutters exist Bert. Nobody is claiming otherwise. There are several important questions to ask with respect this phenomenon. 1. Why are they cutting the cord? 2. Are there enough cord cutters to undermine the financial underpinnings of the MVPD business model? 3. Are there any signs that the practice of tying high value content to the bundle is changing? And yes, adding IP streaming to the bundling model is clearly enhancing the service offering. How much value subscribers place on this new capability can certainly be questioned... "Your mileage may vary." But more important, the availability of content from the bundle via IP streaming is the first step in an inevitable transition for the MVPDs. Consider the following: 1. Viewing behavior WRT pre produced content is fundamentally changing. People do not make appointments to watch this stuff; they are increasingly expecting to access it on demand. This will inevitably lead to IP delivery as the MVPDs make BOTH live streams and network libraries available for VOD consumption. 2. Consumers now own tens of millions of second screens capable of viewing TV content via IP networks RATHER THAN a MVPD set top box. The MVPDs are embracing this, both the cable AND the DBS operators. The cable MVPDs are well positioned to migrate their customers to IP video delivery, as they are the dominant provider of high speed broadband. While some customers may be cutting the cord on the video side, there is significant growth in broadband subscribers. 3. The cable industry is deploying hundreds of thousands of WiFi hot spots to allow their subscribers to access the Internet when they are away from home. This supports the TV Everywhere initiative, and is ultimately going to lead to direct competition with the telcos for voice and messaging services. >> Pay attention Bert. >> >> HBO IS NOT part of the bundle. > > Sorry, you're right. I had misread that, because in my book, HBO IS part of > an MVPD bundle, and yes, as you say, it is adapting. HBO is adapting because > it too, like ESPN, has been LOSING VIEWERSHIP. Unlike ESPN, HBO is the victim of rapidly evolving technology. When the service started, it was appointment theater. This came in parallel with VHS release of movies, for which you had to drive to a store to buy or rent the movie. It had the additional advantage that new movies were released on HBO before they were released on tape. With the proliferation of DVRs it became possible to record desired movies and watch them on demand. This was good for "planners," but no help for spontaneous viewing. Adding to their woes, DBS duplicated their appointment model with pay per view movies, and cable soon followed. The salvation for HBO was their entry into original programming, which provided the same incentive to subscribe to HBO that sports fans have for subscribing to the bundle to get ESPN. Now viewers expect to be able to access movies and TV programs on demand via IP streaming. Netflix changed the landscape - they even buy older content from HBO. HBO must move to a IP streaming model to survive. They no longer get an advantage from their MVPD affiliation OTHER THAN having the MVPD collect the monthly subscriber fee. This is now easy to do via a web portal and the customers credit card. As I noted yesterday, ESPN may be losing viewership for many reasons. Competition is certainly a factor as Fox and NBC are investing heavily in their own sports networks. Seasonality and periodic events like the Olympics and World Cup are also a factor. For many viewers, however, ESPN the primary reason they subscribe to the bundle, especially this time of year. News is probably next. The sticky part can be described in one word... LIVE Their service is growing in value to advertisers, who are seeing the declining effectiveness of ad supported content, which can now be accessed on demand... WITHOUT ADS > >> But the pace of cord cutting IS not accelerating. > > Because Craig said so. Even if it remains steady, it accumulates over time, > Craig. As I have said repeatedly. Please let me know when less than 50% of U.S. Homes subscribe to an MVPD service. Regards Craig ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.