[opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_â_Nathanson_|_Re/code?Date: Wed, 29 Apr 2015 09:19:52 -0400
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
On Apr 27, 2015, at 8:23 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
So, Craig, it looks to me like the congloms are rethinking allowing some
third party (Netflix) to recycle the old stuff. And at least CBS, if not YET
the others, have taken some of this back in-house. Perhaps the recycled stuff
is more successful than they thought.
The networks continue to sell their content to OTT providers. Several new deals
were announced this week, including Seinfeld being sold to Hulu, reportedly for
$700,000 per episode. What Netflix will see is what you would expect in this
market - higher prices, not the refusal to sell library content.
We are also seeing the same content being sold to multiple OTT services, even
as the content owners set up their own sites, like CBS All Access. This is also
to be expected as the content owners have two options:
1. Sell to everyone at lower prices, hopefully generating higher total revenues;
2. Sell an exclusive to one OTT service, charging a significant premium for the
exclusivity.
No, Craig. You got lost again. The very successful Netflix model is NOT by
appointment. If the congloms are rethinking this third party streaming model,
they will NOT retrench back to by appointment, as CBS All Access has NOT done.
No Bert, you are lost. The syndication market includes broadcasters around the
world, all of the second tier MVPD networks that fill their schedules with off
network shows, and the new SVOD services like Netflix. All of the broadcast
market, and most of the MVPD market is by appointment - in a few cases MVPD
networks may offer some of these shows on demand via their TV Everywhere
services.
You are essentially agreeing with me. The trend is away from appointment TV to
VOD. The ability of Netflix and others to PAY the content owners billions for
their syndicated content is changing the TV landscape, but in reality, there is
still far more viewing of the appointment services than the SVOD services,
especially outside the U.S.
I do agree that this is changing rapidly.
If you are saying that consumers will have more choice, easier access,
and the ability to create bundles that are better matched to their
viewing preferences, I agree.
Finally.
I never said otherwise. This is a classic example of how market pressures force
change. Where we primarily disagree is the rate of that change, and what the
market will look like after the congloms move their assets to the Internet.
Regards
Craig
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Other related posts:
- » [opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_â_Nathanson_|_Re/code?Date: Wed, 29 Apr 2015 09:19:52 -0400 - Craig Birkmaier
