[opendtv] The Motley Fool: "TV Everywhere" Stinks, but These Companies Can Fix It

From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
Date: Sat, 20 Sep 2014 20:04:31 -0400

Here's a very recent blog that doesn't seem to be beholden to the MVPD model.
He explains to do Internet TV right, you can't use the MVPD household model. I
think it's even simpler. As people move away from the MVPD model, as he says
they are doing (bottom: "You know cable's going away," or Craig would no doubt
miss it), Internet distribution can offer a large assortment of distribution
options that aren't merely hold-overs from the olden days, when they were the
only practical option.

Bert

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http://www.fool.com/investing/general/2014/09/19/tv-everywhere-stinks-but-these-companies-can-fix-i.aspx

"TV Everywhere" Stinks, but These Companies Can Fix It

By Adam Levy | More Articles
September 19, 2014 | Comments (0)

Your cable provider probably offers a TV Everywhere app and website with your
cable subscription. And you probably don't use it.
A survey by NPD this spring found that just 21% of pay-TV subscribers used the
TV Everywhere services offered to them. TV Everywhere overpromises and under
delivers with just two words. You're lucky if you can stream more than 15
channels outside of your home and, often, those channels aren't worth watching.
So it's no surprise that just one-fifth of subscribers "take advantage" of the
service.

But "TV Everywhere" that fulfills its promise could become a reality in the
near future, thanks to several companies working with content owners to provide
Internet-delivered television. Sony (NYSE: SNE ) plans to launch its service
by the end of the year, and Verizon (NYSE: VZ ) is aiming for mid-2015. Dish
Network (NASDAQ: DISH ) already has at least one content deal in the works,
and rival DirecTV (NASDAQ: DTV ) isn't far behind. Internet-delivered
television could finally deliver on the promise of TV Everywhere.

A reason to switch
As Internet-delivered television starts rolling out, consumers will likely
question why they should switch. After all, the same company that provides
Internet access to their homes offers television service for a marginally tiny
price when bundled. It will be next to impossible for these Internet-television
services to beat them on price. Additionally, Internet TV isn't getting rid of
the cable bundle. At least, not anytime soon.

Now, these services might provide a nice user interface. Tim Cook has remarked
on several occasions how bad the television user experience has become --
leading to multiple Apple TV rumors. But most people are willing to put up with
a suboptimal user interface on their big screens.

However, the TV Everywhere angle could be a huge selling point for
Internet-delivered TV.

A survey from Nielsen found that for every hour of television Americans watched
on a television set, they spent 20 minutes watching television on a smartphone
or tablet. If the content available on mobile devices improves, those numbers
will move closer together. There's clearly demand for content on devices other
than television sets.

Why content companies are hesitant
Don't blame your cable company for its terrible TV Everywhere service. Content
companies are hesitant to offer a lot of content because password sharing has
become commonplace. It seems like everyone I know has an HBO Go password, but
none of them pays for HBO.

The services that Dish, Sony, DirecTV, and Verizon are working on are personal
streaming services. That means that they would be set up so they can only
stream one channel to one device at a time.

The reason that hasn't been implemented with traditional pay-TV packages is
that cable is supposed to be for a whole household. So, if you're traveling,
your wife is commuting home, and your kids are over at a friend's house, and 24
Live Another Day is about to come on, you should all be able watch Jack Bauer
at the same time.

Personal streaming should take care of the password sharing problem. Nobody's
going to share a password because when showtime rolls around, and Jack Bauer's
about to start busting heads, you don't want to be locked out of your TV
service.

It's worth noting that these personal streaming models are aimed at
individuals, not families, so they're limited to a single stream. However, Dish
Network chairman Charlie Ergen might have a different definition of
single-stream than the content companies, which makes the service more
appealing to families if the company can deliver: "If everybody is watching the
same channel," he told analysts, "We call that single stream."

What to expect from Internet TV
Dish seems to have made the most headway with content companies, negotiating
deals with Disney and, more recently, A+E Networks and Scripps Networks. Sony
has a deal in place with Viacom, and is reportedly speaking with Disney and
Fox. Verizon and DirecTV have yet to announce any agreements with content
companies despite talking about their plans.

Sony and Verizon seem to have an advantage over the satellite TV providers.
Sony doesn't have to worry about cannibalizing other television services, and
has millions of Internet-enabled devices in people's households already.
Verizon has the infrastructure in place -- a content-delivery network, a
wireless network -- to support Internet TV and keep prices low.

Dish Network and DirecTV don't have any huge advantages. Unless they can
compete on cost or content, which is a double-edged sword considering it could
cannibalize their satellite services, they won't be able to compete with Sony
or Verizon's infrastructure.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2
trillion out there to be had. Currently, cable grabs a big piece of it. That
won't last. And when cable falters, three companies are poised to benefit.
Click here for their names. Hint: They're not Netflix, Google, and Apple.
Adam Levy owns shares of Apple. The Motley Fool recommends Apple, Scripps
Networks Interactive, and Walt Disney. The Motley Fool owns shares of Apple and
Walt Disney. Try any of our Foolish newsletter services free for 30 days. We
Fools may not all hold the same opinions, but we all believe that considering a
diverse range of insights makes us better investors. The Motley Fool has a
disclosure policy.

[opendtv] The Motley Fool: "TV Everywhere" Stinks, but These Companies Can Fix It

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