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TRENDS IN VIDEO MARKETS

TV viewers have more options now than ever before, as the market finds new ways to meet their demands. Here are a few of the more significant trends in video distribution, and how they affect the way you watch TV and movies:

Digital Syndication

Scripted TV shows usually follow long story arcs- and they age quickly. A few solid hits, though, remain popular with the public long after they’re first aired. Studios and broadcasters earn more money from them by licensing large blocks of episodes to cable networks. Some of the more popular syndicated shows include Seinfeld, Jeopardy!, and The People’s Court.

Though a syndicated show is seldom as popular as the original series, it is profitable because the studio doesn’t face new production expense.

Syndication is not new. It has existed nearly as long as the cable TV industry. What is relatively new is digital syndication. Content providers have begun to license older shows for dedicated steaming platforms such as Netflix, DirecTV Now, and Sling TV.

Streaming of Live Sports

In 2015, the NFL licensed Yahoo to stream a live game between the Jacksonville Jaguars and the Buffalo Bills. Yahoo had exclusive rights to the game, and streamed it world-wide. The game was between small-market teams in an unfavorable time slot (Sunday, 9:30 a.m. EST). Still, it brought in 15.2 million unique viewers.

The game marked the first time a streaming service outbid a broadcast network for an NFL game.  Since then, FOX Sports Go and WatchESPN apps provide live streams of games from multiple markets.

Transactional Video

The conventional pay TV model is a cable or satellite subscription. You pay by the month for a large channel package.

One of the most important trends in TV now ditches the subscription model. Some providers charge small fees for each episode or small group of episodes. as little as $0.99. Google Play, Amazon Prime Video, and iTunes are among the vendors offering video on a per-episode basis. Some will offer discounts, up to 40% per episode, for purchase of a “season pass”, access to an entire season of a series.

In either case, you would pay only for the shows you watch, not for channels or channels bundles.

 Streaming Direct to Consumer

Usually, cable and broadcast TV networks offer their programming through cable or satellite systems. Some offer them through streaming platforms such as Netflix, Playstation Vue, or Sling TV.

One of the most important new trends in the business is cutting out the middleman. Content providers are increasingly likely to offer their shows directly to viewers. 20th Century Fox, ABC-Disney, and NBC Universal opened the way in 2005 by forming Hulu.

This year, the CBS Corporation launched CBS All-Access, and HBO launched HBO Now.  These are stand-alone video services that don’t require cable or satellite subscriptions.

Authentication

Authentication is likely to be the most enduring of trends in the video market. It is essential for newer platforms that enable streaming on multiple devices. If the device you want to stream with is not the one you enrolled with, how does the provider know you’re a customer?

Video services rely increasingly on authentication to identify customers and log them in. In most cases, this means you enter a user name and a four-digit code.

The advantage for you is that you’re not limited to the video services own devices, and you can more easily use your service away from home.

(To follow all trends in internet service, visit buysatellite.net. To get the best connection, talk to us. We can help.)

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VUDU FREE-TO-VIEWER AD-SUPPORTED TV

Image result for vudu logo

As if cable and satellite TV systems weren’t under extreme competitive pressure already, now Wal-Mart is breathing down their necks. The nation’s largest retailer owns VUDU, a streaming video platform that is rolling out an ad-supported free-to-the-viewer movie service.

VUDU currently charges $3.99 for a 1080p movie download. Through its new “Movies On Us” feature, the downloads will be free to the viewer, provided he’s willing to sit through commercials

The first of the ad-supported movie downloads include True Grit (the 2010 remake starring Jeff Bridges), and School of Rock, starring Jack Black. VUDU is promoting both titles heavily.

For any movie title, VUDU will offer the choice of renting it, buying it, or streaming the “Free with Ads” version. Some of the rental and purchase options are available in 4K or Ultra HD.

Jeremy Verba, VUDU’s general manager, said, “This new service provides value for customers who want movies and TV for free, when and how they wish to watch, without sacrificing quality.”

The streaming video market is getting ever more crowded. Last year, Dish Network launched Sling TV, a multichannel streaming VOD service. AT&T has signed carriage contracts for more then 100 channels for its DirecTV Now platform, to be launched by the year’s end. Turner Networks has been working on its own streaming VOD (video on demand) platform, FilmStruck. It’s unveiling has been delayed until November, though, because of a series of technical glitches. Comcast has conducted consumer tests of its TV everywhere VOD service. PlayStation Vue, originally a gaming platform, has has moved into streaming TV.

(For advice about any TV or internet service, talk to us. We can compare all providers and plans available in your neighborhood. Then order any service with just one phone call)

 

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HULU LIVE TV SERVICE 

Hulu

What had been rumored for months is now official. Hulu has confirmed that it will soon be launching a live streaming TV service.

Cord Cutter News, having acquired a copy of a survey Hulu sent to a small sample of its elite subscribers, reported that the internet video streaming service will charge $35.00 for its basic channel package streamed to one in-home or mobile device. For $50.00 per month, the customer will have the option of streaming the package to multiple devices. The offer includes 20 hours of DVR storage and live or on-demand access to all four major broadcast networks.

This last item is interesting, because CBS has not been mentioned in news reports about about carriage rights deals for Hulu’s new service.

For $20.00, the customer can increase DVR storage capacity to 300 hours.

The basic package likely will have about 80 channels, including AMC, ESPN, TBS, TNT, and USA. Sling TV, the pioneer in multichannel streaming TV, charges only $20.00 for its basic package, but it has only 27 channels. PlayStation Vue offers 55 channels in its Access Slim package for $30.00 per month.

Early reports indicate that Hulu’s live TV service will sell HBO as a $15.00 per month premium option, and Cinemax for $10.00 per month. Showtime, WWE, and Starz/Encore are also likely to be in its lineup, probably as $10.00 premium options. NFL RedZone and FOX Soccer Plus may also be included as premium options.

Hulu’s Live TV service is likely to become active late this year.

YouTube is another veteran internet video streaming service that has begun to offer paid curated content. Its $10.00 per month ‘Red’ platform offers ad-free video geared for teenagers and young adults.

(To get the most out of streaming video services, you need a reliable internet connection. If yours doesn’t measure up, talk to us. We can help.)

 

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PAY TV’S WEB REVOLUTION

The Federal Government wants to require cable and satellite TV service providers to ‘unlock’ their set-top boxes.  Under an ‘open-source’ standard, if you want to drop one provider’s service, you can use the box you already have for a new provider’s service. You don’t have to buy or lease a new box.

Some pay TV system operators are saying that the box will soon be obsolete, anyway. They say that changing the technical standards for set-top boxes will be futile. It is an unnecessary expense, they say, and may even be counterproductive, since almost all TV content will soon be streamed over the internet.

Last year, Dish Network demonstrated the market power of  a dedicated multichannel web streaming platform with Sling TV. The new service has been popular, and now has more than 600, 000 subscribers. Sling TV carried just seventeen channels at its launch, but now carries more than sixty, including premium movie channels. Its basic twenty-three channel package sells for just $20.00 per month.

Other pay TV providers, observing Sling TV’s success, have entered the internet video streaming market. Verizon Wireless has pursued the mobile market aggressively with its Go90 platform. Comcast has tested its XFinity Stream IP TV service in selected markets, for the purpose of bringing broadband users who aren’t pay TV customers into its TV System. Time Warner Cable has tested TWC TV, an internet-only TV bundle, in New York City. For now, only TWC’s broadband customers can get TWC TV, but the company wants to offer it to others soon. Sony’s PlayStation, once strictly a gaming console, now handles streaming video with the Vue upgrade.

More vendors will follow. Within two or three years, the set-top box is likely to become a relic of the past, as almost all multichannel video service providers will be streaming their content over the internet.

(For streaming video, you need the right internet connection. Talk to us. We can help.)