[opendtv] Re: Everyone's Wrong About the Streaming Wars
- From: "Craig Birkmaier" <dmarc-noreply@xxxxxxxxxxxxx> (Redacted sender "brewmastercraig" for DMARC)
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 4 Nov 2019 07:11:42 -0500
On Nov 3, 2019, at 11:58 PM, Monty Solomon <monty@xxxxxxxxxx> wrote:
https://onezero.medium.com/everyones-wrong-about-the-streaming-wars-95f1eb717a90
It’s not a zero-sum game for Apple TV+, Netflix, and Disney+
For years Bert and I have debated the future of Multichannel Video Content
providers - cable, DBS, and now VMVPD services that continue to offer a bundle
of linear channels. Bert argued - and has been proven correct - that Video On
Demand via the Internet would have a huge impact on MVPD services. I argued
that linear TV services would continue to exist for a range of content - live
sports, news, and major events.
The new reality is that all of these services now coexist, even as distribution
is migrating to the Internet for both fixed location (broadband) and mobile
(Cellular data) access. This article makes a persuasive argument that “looking
for winners and losers” is meaningless:
Historically, networks were paid licensing fees by cable and satellite
distributors for each of their subscribers, whether or not they watched a
particular network. Now, streaming services will only be able to monetize the
consumers that find their content good enough to pay for directly.
The bottom line is that consumers continue to pay a rather significant amount
of money each month for TV entertainment. The challenge for content owners in
this era is to earn the loyalty of consumers, rather than being paid whether
consumer watch their content or not.
Broadcasters should think hard about this new value equation. Depending on
retransmission consent payments from MVPDs may allow broadcasters to survive
for another decade. But consumers may soon choose better alternatives.
Regards
Craig
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