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NETWORK BRANDS ERODED BY STREAMING VIDEO 

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As volatile as the TV industry has been lately, the one segment that has been relatively stable– and consistently profitable– is network broadcasting. This may be about to change.

With the release of new video interfaces such as the most recent upgrade of Comcast X1, and with the launch of multichannel live TV streaming platforms such as Sling TV, DirecTV Now, and Hulu Live TV, the most prominent broadcast networks finally have reason to fear possible extinction. They’re losing their ability to keep their brands in the public eye.

Investment Bankers Weigh In

Kannan Ventakeshwar, an investment analyst for Barclay’s, a multinational British bank, wrote a letter about the TV industry’s future to investors. In it he stated: “Every OTT product is organizing its default user interface by the type of content and not by network. So sports does not show up as ESPN or YES Network. Instead, the default interface is organized by sport and/or teams. This is also becoming true with legacy user interfaces like X1. As a result, it is tough to see the brands of individual networks retaining value in the coming years.”

Until recently, the program guides for cable and satellite TV listed channels under assigned numbers. It was only by looking up particular channels that the viewer could see what shows were airing on those channels at what times.

Viewers Want Convenience

Ventakeshwar said, though, that viewers are losing patience with this system. “…In every evolution of OTT”, he said, “the number of clicks needed to get to a program guide or a network viewing option is actually increasing. Given the importance of consumer inertia in usage patterns, this is not a trivial shift.”

In other words, the harder it is for the viewer to find the shows he wants, the
more likely he is to tune out altogether.

Listing by genre or title saves time, but reduces visibility of network brands. This threatens the network business model. Under the old model, new shows are far more likely to succeed if they immediately precede or follow established hits. A highly popular show might even carry an entire evening’s lineup. A ‘halo’ effect– the network’s reputation for airing shows the viewer likes- can induce him to try out its newer shows.

No More ‘Halo’ Effect

If video interfaces are no longer listing shows by channel, though, the lead-in.
lead-out, and halo effects nearly disappear. Each show is an orphan, standing or falling on its own, and offering little market support to other network programming.

Some streaming platforms, such as Amazon Prime Video, Netflix, and Hulu, further undermine network brands by offering their own original content. And you can find their content only on their own platforms. If you want a Netflix original, you’ll find it only through Netflix.

 

How can the networks adapt to these developments? We don’t know, but they haven’t yet. Perhaps they never will.

If they can’t figure out how to protect their brands, the giant broadcast networks may be headed for extinction. Productions studios could live or die by their latest hits.

Notes:

Comcast owns NBC Universal, the largest and oldest broadcast TV network.
With its updated X1 interface, then, the cable system is partially cannibalizing its own business.

OTT is ‘over-the-top’ video. It is content streamed via the internet as a standalone service. With OTT, no cable or satellite system controls or distributes the content.

(For streaming video, you need a strong internet connection. Is yours adequate? If it isn’t, talk to us. We can help.)

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ROKU RELEASES $30.00 STREAMING STICK

Video without Cable or Satellite Subscriptions

If you’re seeking a way to stream video to your computer, it’s getting easier. And it costs less than ever before.

The market for internet video streaming devices is getting ever more crowded. One manufacturer after another is producing dedicated streaming sticks or boxes to meet the growing demand for video services without conventional cable or satellite subscriptions.

Roku’s New Streaming Devices

Roku, which has long been a leader in the market, has pulled ahead in the  industry’s price war with Monday’s introduction of the Express Player, a new streaming stick that will retail for a mere $29.99. This beats the $35.00 price for Google’s Chromecast Stick and the $40.00 price for the Amazon Fire TV Stick.

The Roku Express works on TV sets with HDMI connections, and handles 1080p HD signals. Another model, the Express+, works on older TV sets without HDMI ports.

Other New Roku Models

Beside the Express models, Roku released three upscale streaming devices on Monday: the Premiere, the Premiere+, and the Ultra. The Premiere handles Ultra HD or 4K streaming at up to 60 frames per second. The Premiere+ features the same capabilities, plus High Dynamic Range (HDR) support. The Ultra has all of the capabilities of the Premiere and the Premiere+, and it decodes Dolby Digital and Dolby Digital Plus Surround Sound. For local media playback, the Ultra also features a USB port. The Premiere will retail for $80.00, the Premiere+ for $100, and the Ultra for $130.00.

So far, Roku is the only manufacturer of dedicated video streaming devices to enroll in Comcast’s Xfinity TV Partner program, an effort to incorporate Comcast’s TV Everywhere app into streaming devices via open HTML5 standards.

All Roku devices will work with any internet service fast enough for video. This includes HughesNet.

Roku dominates the streaming device market, with about a 49% share.

(For timely and reliable information about TV and internet services, talk to us. We can help.)

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STREAMING SERVICES: VIDEO & MUSIC

One advantage of having a HughesNet broadband connection is access to video and music streaming services such as Netflix, Hulu, Amazon Prime Video, Sling TV, Spotify, and Pandora. Such services stream content to you directly via the web. Most of them don’t require a cable or satellite TV subscription, nor installation of any proprietary equipment. Most are compatible with iOS and Android tablets and smartphones, XBox One and Playstation Vue gaming consoles, Mac and PC computers, and Chromecast, Roku, and Apple TV streaming devices.

Most such services are very inexpensive. Pandora and Spotify, two of the leading web music services, charge nothing for their basic service tiers. The only catch is that your music will be interrupted occasionally by commercials. To skip the ads, you’ll pay a nominal monthly fee: $4.99 for Pandora, $9.99 for Spotify.

Video streaming services are not free, but they don’t cost much. Hulu, which carries a wide variety of TV shows and movies, charges $7.99 per month for video streaming with “limited commercials”. For an additional $4.00 per month. you can get the commercial-free version. Netflix, the most popular streaming video service, carries a huge library of TV shows and movies. The basic Netflix service, at $7.99 per month, will stream to just one device, and is available only in standard definition. For $9.99 per month, you can get an HD-capable version for up to two devices. For $11.99 per month, you can get it in Ultra HD on up to four devices. Most of Amazon Prime Video’s content is free with a $99.00 annual membership, which includes free shipping for most items sold in Amazon’s online store.

Sling TV, launched by Dish Network in early 2015, is an interesting addition to the streaming video market. Sling TV differs from most other streaming services in offering live TV. The basic 23-channel package costs just $20.00 per month. Several movie and sports packages can be added to the core package for just $5.00 per month each. For about $50.00 to $60.00 per month, about half the cost of a standard cable or satellite TV subscription, you could get a combined live TV, sports, and premium movie channel bundle. You would have a very complete TV service, and if you don’t require a huge number of channels, you can save a substantial sum of money. Unlike the standard Dish Network service, Sling TV doesn’t require a satellite dish or a long term contract.

These are just a few of the internet video and music streaming services available. For a wide variety of convenient and low-cost entertainment options, you should look into it.

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TV EVERYWHERE

With your HughesNet service, you’ll have expanded options for TV viewing. With the ability to stream video via the internet, you are not limited to the programming choices or bundles offered by cable and satellite TV systems.

TV Everywhere is an industry term for streaming video services that don’t require conventional cable boxes or satellite dishes. It’s also known as authenticated streaming or authenticated video-on-demand. For most such services, you won’t need to have any equipment installed, and for some, you won’t have to sign any long term contracts. Access to programming is through an authentication code you enter on your device.

The pay TV industry developed TV Everywhere to answer the competitive challenge posed by streaming services such as Hulu, Netflix, and Amazon Prime Video.

TV Everywhere offers flexibility in viewing platforms. Most TVE applications are compatible with iOS and Android smartphones and tablets, Mac and PC computers, Roku, PlayStation, XBox One, Apple TV, and Chromecast devices.

Most TVE services are additions to conventional cable or satellite TV subscriptions. Last February, though, Dish Network launched Sling TV, an independent web-streaming-only platform. Sling TV customers don’t have to sign any long term contracts, can pay on a month-to-month basis, and don’t need Dish Network dishes or receivers. Most programming packages are light on the wallet. The core Sling TV package of 23 channels costs just $20.00 per month.

Since then, some cable system operators are considering offering similar products. Comcast and Verizon have tested separate streaming apps in some markets. Use of these apps does not require the standard cable TV subscription, though Comcast’s streaming service is available only to its broadband subscribers.

As a rule, streaming video services cost much less than cable or satellite TV subscriptions. This is mainly because their channel bundles are usually much smaller. You will need to research TVE providers, though, to be sure you save money- and that you’re getting the channels you want.

(For access to TV Everywhere or other internet services, talk to us.)