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Cord-Nevers Still Not Interested, Even With “Skinny Bundles”

Phillip Dampier June 14, 2017 Competition, Consumer News, Online Video 4 Comments

Consumers who refuse to pay for cable television today still won’t pay for it tomorrow, even if they are offered a slimmed-down “skinny bundle” of cable networks for less money.

Sanford Bernstein media analyst Todd Juenger continued a series of focus groups with consumers to find if alternatives to cable television are attractive to consumers. The under-40 sample mixed cord-cutters and current cable and satellite customers and presented them with a range of recently available options from Sling, DirecTVNow and YouTube TV and asked if they would subscribe.

Once again, Juenger discovered the group most likely to subscribe to a cable-TV alternative already had pay television and often paid for the top-tier of service. So far, many of those customers are sampling different services but have not taken the last step of dropping their existing cable television package.

Multichannel News reports most won’t disconnect because of the lack of DVR service from most cable-TV alternatives. Until robust cloud-based DVR service is widely available and not hobbled by a lack of fast-forwarding functionality, new streaming services like DirecTVNow probably will never replace cable television.

Cable-nevers — mostly younger consumers that have never paid for cable television, still don’t seem to be willing to pay for online alternatives either. Most cited the fact they watched individual shows, not channels, and most “skinny bundles” invariably lacked certain networks with the programming they wanted to watch. Many would prefer to subscribe to television shows, not networks.

Cable TV pricing, widely slammed by many customers as too high, didn’t seem to matter as much to those participating in the series of focus groups. When asked what cable networks they would be willing to pay $5 a month each to watch, ESPN was rated on top, followed by Food Network, FX, HGTV, Logo, NBCSN, Syfy and VH1 — many carrying niche shows and original content not available elsewhere. If all eight networks were bundled together, that would cost $40, considerably more than the per channel price of much larger packages.

While older cable subscribers tend to watch programming from the same 6-10 cable networks, younger viewers seek out specific shows, and may not be able to identify what cable networks air them. They also watch on-demand more than older viewers.

Fox Spars With Its Own Affiliates, Quietly Launching Streaming Network Feed on Hulu

Phillip Dampier June 12, 2017 Competition, Consumer News, Online Video 1 Comment

Subscribers to Hulu’s live-streaming TV service last week discovered live Fox network programming was available on the service whether a local Fox affiliate agreed to stream its programming to viewers or not.

The network quietly launched a new national 24-hour streaming feed of Fox Network shows filled out with programming from other Fox-owned networks in more than 70 markets where its affiliates have yet to sign an agreement to stream local stations.

For now, the national Fox Network feed is only available over Hulu’s live TV service, part-owned by 21st Century Fox. But sources told the Wall Street Journal the network intends to launch it on other streaming platforms in the near future (subscription required to read linked story).

The feed offers the full Fox Network schedule. At times when local stations normally carry syndicated programming, infomercials, or local news, the national Fox feed airs shows from other Fox-owned cable networks including National Geographic, Fox News Channel, Fox Business News, and content from Fox’s enormous library of programming offered by 21st Century Fox Television Studio.

The move has angered Fox’s affiliates, who are angling to strike their own more lucrative carriage deals for streaming services. Fox affiliates complain Fox’s terms for local station participation on Hulu’s streaming platform are inferior to the compensation offered to affiliates of rival networks, often by more than 50%.

Fox set the terms allowing the launch of the feed sometime ago as part of their affiliate renewal contract. Fox affiliates cannot compel the network to switch the feed off, but in markets where local stations do manage to sign deals with streaming services, the local station will replace the national feed.

The announcement is bad news for Sinclair Broadcast Group, the largest local station owner in the country. Sinclair has yet to sign a contract with Hulu to allow carriage of its owned and operated Fox-affiliates, so where a local Sinclair Fox affiliate operates, streaming services will carry the national Fox feed instead.

Viewers will be able to watch all Fox Network shows, including whatever NFL game Fox’s national feed chooses to carry. But missing from the lineup will be local news and other programming.

CBS All Access Offers Showtime Add-On for Existing Customers

Phillip Dampier May 11, 2017 Competition, Consumer News, Online Video 1 Comment

CBS is now offering CBS All Access and Showtime’s standalone service customers a bundled package of both services for up to $2 off.

Starting now, current customers who visit their account page on either service will have the option of adding either CBS All Access or Showtime to their account. CBS will expand the service to new subscribers at a later point, so if you have neither service today, you cannot get this offer yet.

Prices reflect a bundling discount. Showtime itself normally costs $10.99/month. CBS All Access costs $5.99 a month with commercials, $9.99 without.

  • Showtime with CBS All Access Limited Commercial Plan: $14.99 (save $1)
  • Showtime with CBS All Access No Commercial Plan: $18.99 (save $2)

CBS CEO Les Moonves has promised a bundled offer since last year, and now it has arrived.

Once subscribed, customers can access both services on desktop computers, mobile devices, tablets, and streaming video boxes like Roku.

One benefit of CBS All Access is the option of live-streaming your local CBS station, available in about 90% of U.S. households. CBS is taking steps to broaden online distribution of CBS affiliated stations on other streaming platforms as well, which could make CBS the first network to offer wide access to local stations on emerging live streaming platforms like Hulu TV, YouTube TV, and DirecTV Now.

CBS claims about 1.65 million customers subscribe to Showtime’s online streaming service and almost the same number subscribe to CBS’ All Access Pass. In comparison, HBO Now, available on a standalone basis, has around two million subscribers.

Sling TV Offers $50 AirTV Player for Subs Who Prepay 3 Months of Service

Phillip Dampier April 25, 2017 Competition, Consumer News, Online Video, Sling Comments Off on Sling TV Offers $50 AirTV Player for Subs Who Prepay 3 Months of Service

AirTV Player

Sling TV subscribers that prepay for three months of Sling TV’s $20/mo “Orange” 30-channel streaming cable TV plan can get an AirTV Player + Adapter for $50, a discount of $79.99 off the $129.99 retail price.

Dish Network’s Sling TV service rebranded its service today, in light of competitive pressure from AT&T’s DirecTV Now and new streaming services from YouTube and Hulu. The company ditched its “basic TV” marketing pitch and has now recast the service as “A La Carte TV,” but the changes are in name-only. There is nothing different about the packages or pricing, just the marketing message pushing their packages.

“A La Carte TV is choice in an industry that prevents it,” the Sling TV website states. “Personalize your own channel lineup. Start with the service that’s best for you, then customize with Extras in your favorite TV genres like Sports, Comedy, Kids, News, Lifestyle, Hollywood Movies, and Spanish TV. Change your service online anytime.”

“As we expected, competitors are coming out of the woodwork,” wrote Sling TV CEO Roger Lynch in a blog post. “However, we didn’t expect that they’d drag three key pieces of Old TV baggage with them: bloated bundles, higher prices and lack of flexibility. The only choices these competitors give consumers is a big bundle or even bigger bundles. That isn’t the choice consumers want. Plus, they’re making people pay for features and channels they may not want. The ‘new guys’ are missing the point and re-creating the sins of Old TV.”

Lynch admits Sling TV isn’t true “a la carte,” because subscribers still end up with channels they don’t want.

“Every consumer would love to just pay $20 and then choose the twenty channels they want,” Lynch wrote. “And we would love that too. We would do that in a heartbeat if programmers would let us…but they won’t.”

Sling TV is also attempting to find a niche targeting international audiences with packages of international networks that are either not available on cable, or can cost a fortune.

“Sling TV is the only pay-TV service that offers the ability to subscribe only to programming from a specific region, including Mexico, Spain, South America and the Caribbean,” Lynch wrote, adding the service now offers more than 300 channels across more than 20 language groups.

The total price of the three-months of prepaid Orange service and the AirPlay TV + Adapter is $124.97, before state and local sales taxes are applied. Subscribers can also qualify for the deal with other packages:

  • Prepay for four months of Sling TV if your monthly payment is between $15-$20 and get AirTV Player and AirTV Adapter for $50.
  • Prepay for six months of Sling TV if your monthly payment is under $15 and get AirTV Player and AirTV Adapter for $50.

Sling TV customers can visit sling.com/devices/airtv to buy the bundle. A separate deal offering a 25% discount off an RCA indoor TV antenna was not working at the time this article was written. Existing Sling TV customers can also qualify for this promotion by writing to the company’s social media team on Sling TV’s Facebook page.

The AirTV Player allows users to combine over-the-air free TV with streaming services without having to change viewing sources on your television.

Comcast’s NBC Preparing Launch of Subscription “All Access”-Style Streaming Service

Comcast’s NBCUniversal is laying plans to introduce a premium online video service highlighting NBC Network content and possibly various programming from the various cable channels owned by Comcast.

After watching rival CBS amass more than 1.5 million subscribers for its “All Access Pass” ($5.99, $9.99/mo for commercial-free option), Comcast’s NBC entertainment division isn’t willing to leave money on the table any longer.

The yet unnamed service is expected to compete with services like Hulu and Netflix, but will most likely be comparable to CBS’ premium subscription offering. In addition to featuring a deep library of NBC content, the service could include a significant catalog of past and present shows from cable networks like Bravo, SyFy and USA. Also to be determined is whether NBC will follow CBS’ lead and offer viewers live streaming of their local NBC station as part of the package.

The new service may not launch in the immediate future because Comcast is still observing restrictions imposed by regulators as a condition of its 2011 acquisition of NBCUniversal. The rules make it difficult for Comcast to develop services comprised entirely of content it owns or controls. Federal regulators added the restriction out of concern Comcast could interfere with Hulu’s access to NBC content. Hulu is popular with cord-cutters, and is seen as a viable alternative to cable television. The last of these restrictions expire in September 2018, about the time Bloomberg News reports Comcast is likely to launch the service.

If all the major American networks decide to develop their own premium streaming services, it could have significant implications for Hulu, which combines content from its partners NBC, ABC, and FOX. If NBC pulls out of the partnership, it will be free to keep all the revenue earned from its own streaming platform, and could inspire ABC and FOX to follow.

Observers suspect this represents more evidence that broadcast networks increasingly expect viewers to pay for access to their programming, at least online.

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