[opendtv] Re: We cut the cord -- and hurt ourselves: How the dream of cheap streaming TV imploded
- From: "Craig Birkmaier" <dmarc-noreply@xxxxxxxxxxxxx> (Redacted sender "brewmastercraig" for DMARC)
- To: opendtv@xxxxxxxxxxxxx
- Date: Fri, 26 Apr 2019 08:14:27 -0400
On Apr 25, 2019, at 9:51 PM, Manfredi (US), Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Monty Solomon wrote:
We cut the cord - and hurt ourselves: How the dream of cheap streaming TV
imploded
With streaming services piling up and costs rising. the platform's original
promise has lost its luster
https://www.washingtonpost.com/business/2019/04/13/how-dream-cheap-streaming-television-became-pricey-complicated-mess/
Mostly, too simplistic to be credible. Nothing "imploded." In fact, we're
only getting started, and cord cutting is still accelerating, depending whose
numbers you read. So, past tense "imploded" sounds like more ... hype!
No Bert, it is reality.
Getting ready to go back to cable again...
To SAVE money.
Consumers have been able to spend their money on TV entertainment for more than
three decades. There have always been options to spend more, whether it was
just subscribing to HBO, or buying DVDs at Target and Walmart.
The reality is that while the technology for delivering entertainment has been
evolving rapidly, one thing has been constant - the desire to maximize revenues
and profits by the media conglomerates and their partners in distribution.
We have seen the growth of VHS, DVD, Cable, DBS, FIOS, movie downloads, and now
streaming on demand. The streaming services offered lower prices while they
developed the technology, allowing us to pay to be their Beta testers. Now that
the streaming technology is ready for “Prime Time,” the prices are approaching
the same level as the facility based competitors.
To make a proper comparison, it is important to consider that MVPD pricing has
always had three major components:
1. Infrastructure cost - i.e. satellites, fiber/coax or Fios networks;
2. Content - what they paid the congloms for the entertainment products;$35
3. Profit.
Before broadband, the cable bill reflected only to cost to deliver
entertainment. With broadband they provided another valuable service, which
pushed our bill north of $120/month. Cutting the TV cord saved some money
versus DirecTV Now when it was $35/mo. For most of last year the combined cost
of Cox broadband and DirecTV Now was below $100/mo. Now it is back up to
$135/mo.
“Hello Cox - please make me a better deal.”
And they will, providing all local station, many more channels, and a free year
of HBO.
We already cut to “cord” to Netflix a year ago. Now the media is saying that
Netflix could lose up to 10 million U.S. subscribers when the new Disney
streaming service begins operation this fall.
Bottom line, streaming is no cheaper - possibly much more expensive - than our
former TV fixes. It’s hard to keep track when you authorize a credit card,
rather than paying a physical monthly bill. But it does offer some advantages:
1. Plenty of archival programming available on demand.
2. The ability to consume an entire season of a program at whatever pace you
want. No waiting for next week or missing an episode...
3. The ability to enjoy the entrainment we are paying for on all of our
“screens,” anywhere, anytime.
With way more choice and way easier changing of providers, the streaming
option has anything but imploded. People may possibly be giving up one fix
for a new fix, if it comes to that. Big whoop. Nonsensical high drama.
The only major change that favors the streaming services is that they do not
require long term contracts. But they raise rates on a regular basis.
Maybe someone is going to change the playing field again. We can hope...
Regards
Craig
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