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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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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

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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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WAL-MART TELLS CUSTOMERS: ‘CUT THE CABLE!”

Cable and satellite TV system operators are in a tough, viciously competitive business. Not only do they have to keep close tabs on each other, they’re losing subscribers to internet video streaming services that threaten the long-term future of the entire industry.

As if these woes weren’t enough, the nation’s largest retailer has moved in on their turf. Early this month, Wal-Mart inaugurated a promotion for video streaming tools with the slogan: “Cut the Cable”.

Encouraging its customers to ditch the conventional pay TV subscription model, Wal-Mart outlined four steps for doing so– including, of course, buying video streaming players and antennae from Wal-Mart.

On its website, the retailer asks, “What better way to save money on your cable bill than getting rid of it altogether?” Though it doesn’t mention prices of its TV sets or streaming tools on the promotional page– the visitor has to find the product page for that– Wal-Mart hints that the move could bring big savings: “As TV Cable bills grow even larger– families spend an average of $160 per month on cable bundles!- an increasing number of people are opting to cut the cord and slice that monthly bill by up to half. Basically, this means dropping your cable or satellite TV subscription and opting for the ease and flexibility of watching all your favorite shows and movies on streaming services like Netflix and Vudu.”

Wal-Mart owns Vudu, though it did not mention this fact in the ad.

While some video streaming platforms offer live access to broadcast networks and their affiliate stations, most cord-cutters will need over-the-air antennae to receive them. Wal-Mart sells antennae, too.

The “Cut the Cable” promotion will continue until July 31.

In most rural areas, and some suburban areas, cable TV is unavailable anyway. For these areas, satellite TV or streaming services such as Sling TV are the only practical options. If this is the case where you live, we can help you find the TV service that best meets your needs.

Whatever your TV or internet needs, talk to us. We can help.

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Sling TV’s Multiple-Stream TV Service

Dish Network launched Sling TV, its dedicated streaming video platform, early last year. It was a revolutionary idea for the often-complacent pay TV industry. A satellite system operator was offering a semi-independent internet video streaming service. The customer would not need the customary contract, would not have to sign a long-term commitment, and would not have to schedule an installation. The customer would not need a satellite dish or a dedicated TV set-top box.

Sling TV could be streamed to a wide variety of devices. These include Mac and PC computers, iOS and Android tablets and phones, almost every dedicated video streamer, and several gaming consoles. There are very electronic devices Sling TV will not support.

In other respects, Sling TV would resemble a conventional cable or satellite TV service. It would carry multiple channels in its core package, including major commercial broadcast stations. The basic channel package would be much smaller than the typical pay TV package, though, and would cost much less.

If there was any major drawback with Sling TV, it’s that it was limited to one stream per household. On Wednesday, April 13, Dish addressed the matter with a new ‘multi-stream’ service (now in beta tests).  The customer will be able to stream it to up to three devices at a time. At its launch, the multi-stream selection in the basic package was limited to a few FOX networks: Fox Sports, FX, and National Geographic. Optional premium channels available in multiple streams include A&E, AMC, EPIX, HBO, Scripps, Turner, and Univision.

The channel selection available for multiple streams is likely to expand over time. Dish Network is negotiating with content providers, and expects to offer a far more channel options within a few months.

The basic twenty-three channel Sling TV package sells for just $20.00 per month. Several optional ‘Extra’ programming packages are available for $5.00 per month each.

One average, TV bills for Sling TV customers are about half the size of cable bills.

(For any internet video streaming service, you need a good broadband connection. 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.)

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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.)