No doubt, the Internet will replace cable AND BROADCASTING in due time.
This analysis includes a large group of consumers who are paying for Amazon
Prime, who could care less about Prime Video - like our household.
But more important, the majority of homes in the U.S. pay for BOTH a facilities
based MVPD service AND at least one OTT service like Netflix.
It will be interesting to see how the cable industry responds to the OTT
competition moving forward. We just received another rate increase from DirecTV
Now, as I had predicted would happen as the OTT services begin to replace the
facilities based services.
I’m waiting to see what Apple offers at their event Monday, but it is likely
that we will go back to Cox cable for a TV/Broadband bundle again...
TO SAVE MONEY.
My monthly broadband service from Cox is now $94 after taxes. DirecTV Now will
be $50/mo. $144/mo total.
I can get a two year TV/Broadband bundle from Cox for $99/mo plus taxes -
likely to be about $130/mo.
The only meaningful takeaway here is that people around the world are willing
to pay for their TV entertainment. What is dying is “Free TV.”
Regards
Craig
On Mar 23, 2019, at 8:12 AM, Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
wrote:
No doubt, the Internet will replace cable AND BROADCASTING in due time.
This analysis includes a large group of consumers who are paying for Amazon
Prime, who could care less about Prime Video - like our household.
But more important, the majority of homes in the U.S. subscribe to BOTH a a
facilities based MVPD service AND at least one OTT service like Netflix.
It will be interesting to see how the cable industry responds to the OTT
competition moving forward. We just received another rate increase from
DirecTV Now, as I had predicted would happen as the OTT services begin to
replace the facilities based services.
I’m waiting to see what Apple offers at their event Monday, but it is likely
that we will go back to Cox cable for a TV/Broadband bundle again...
TO SAVE MONEY.
My monthly broadband service from Cox is now $94 after taxes. DirecTV Now
will be $50/mo. $144/mo total.
I can get a two year TV/Broadband bundle from Cox for $99/mo plus taxes -
likely to be about $130/mo.
The only meaningful takeaway here is that people around the world are willing
to pay for their TV entertainment. What is dying is “Free TV.”
Regards
Craig
On Mar 22, 2019, at 9:00 PM, Manfredi (US), Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Vinton Cerf, one of the actual "fathers of the Internet," some years ago at
an IETF meeting, said that once the Internet advances enough that it can
carry a new type of service, it becomes the dominant medium for that service.
I keep thinking of that prophetic quote.
Bert
----------------------------------------------
https://www.tvtechnology.com/news/online-video-subscriptions-surpass-cable-for-first-time-in-2018
Online Video Subscriptions Surpass Cable for First Time in 2018
Online subscriptions have grown by nearly 500 million globally since 2014,
per an MPAA report.
Michael Balderston 10 hours ago
WASHINGTON-There is a new leader in the clubhouse when it comes to the most
popular video service for consumers across the globe, as a report from the
Motion Picture Association of America indicates that online video services
overtook cable subscriptions for the first time in 2018.
Online video services, like Netflix, Amazon Prime and Hulu, saw gains of
131.2 million subscribers throughout the world in 2018, a 27 percent
increase from 2017. That brings its world-wide total to 613.3 million
subscribers, 186.9 million of which are in the U.S. Cable, meanwhile, saw a
slight decrease of about 2 percent to 556 million; the U.S. total saw a
slight dip, but still remained around 50 million subscribers.
Since 2014, online video subscriptions have seen the largest amount of
growth among all the pay TV options. As of 2014, online video services had
around 150 million subscribers, per MPAA's findings. Cable, satellite, DTT
and other third-party premiums saw either no significant growth or decreases
in its subscription numbers over the same time period. IPTV is the only
other service that has seen a solid uptick, but it remains under 300 million
subscribers.
Despite the decrease, cable remains the top revenue generator among the
services, and in fact saw an increase of $6.2 billion in total revenue for
2018, bringing it to $118 billion in 2018. Online video subscriptions are
well behind, generating just under $40 billion according to the MPAA report.
The MPAA report counted households that have more than one type of video
service in each of the categories to which they subscribe.
See the full report from MPAA here.
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