What are the big content creators going to do; ABC, CBS, Turner, Scripps, and others have been very comfortable with a two stream revenue model of subscription and ad revenue. The cable operators have paid monthly license fees to content companies for the right to carry on their channel line-up. But the consumers want mobility and flexibility to watch what they want, where they want, when they want, and how they want.
And content makers have made separate deals with Hulu, Netflix, Apple, and others to offer programming on line. Where the cable operator can try to differentiate itself is by providing their live channel line-up content on line as well. "As the line between traditional TV and web video blur, it will no longer make sense for networks to distinguish between TV and every other video-capable device. This means migrating not only single programs to the web—along the lines of what Hulu, Apple, and others do now—but also letting viewers access traditional linear television from mobile phones, iPads, and of course computers." Slowly, apps are being offered to offer live feeds although the consumer is restricted to watching inside the home. That is not what the consumer ultimately wants. They want complete freedom, untethered from their cable line and cable settop box. For those with a Slingbox, mobility already exists, but it still requires a devoted settop box not being used at the same time in the home.
Online right fees for live network carriage adds another wrinkle to the cable operator. Ultimately, live content mobility is a game changer in the cable industry. Will franchises still be required or will cable companies actually start to compete with each other as consumers get the opportunity to select their mobile cable carrier? Will programming networks think to bypass operators to offer a direct subscription to the consumer? Or will Apple or Amazon come and offer themselves as the platform to sell subscriptions to networks? If so, the cable operator business changes from being a network platform to a broadband platform and they will change their pricing models as well to reflect usage fees.
"Executives from Disney, Turner, and Comcast were in unanimous agreement that we are only two years away from 75 percent of TV content being available online and on mobile devices." On demand content yes, live content, not so fast. And as you can see, it will only lead to many more questions and many more new opportunities.
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