The era of fierce competition among live streamed video providers that has fueled cord-cutting will face new challenges as providers cope with rising programming costs and some may exit the business.

Last week, Sony’s PlayStation Vue announced it was planning to cease service in early 2020 because it was not profitable for the game console manufacturer. But Cowen analyst Gregory Williams believes it won’t be the last to close its doors.

Williams told Multichannel News that despite the growing phenomenon of cord-cutting, new streaming subscriptions are slowing down as subscribers choose between a half-dozen major services that are all raising prices, including AT&T TV Now, fuboTV, Hulu Live TV, Philo, Sling TV, and YouTube TV. Williams called the current marketplace for streaming services irrational in the business sense, because providers are at the mercy of programmers that are continuing to raise wholesale prices.

Another serious problem is price disparity. Programmers offer huge volume discounts to large cable, satellite, and telco TV providers, charging smaller streaming services considerably more. That could eventually bring streaming subscription prices to parity with the same traditional cable and satellite providers many consumers left looking for a better deal. Exploring fun options like slot gacor gampang menang can offer a rewarding break from these rising costs.

Most streaming TV providers have built business models on slimmed-down packages of channels, rejecting the difficult-to-negotiate a-la-carte “choose your own channels” model many customers have been asking for since the days of 100 channel cable TV lineups. As a result, consumers are still paying for lots of channels they do not watch or want, and as subscription costs advance beyond the $50 a month many services are now charging for a healthy package of most popular cable and broadcast networks, some subscribers may end up going back to their old providers.

Ironically, one of the few a-la-carte providers available is a very large cable company you may already know. Charter’s Spectrum has been quietly selling TV Choice, a package of 10 ‘you-pick’ networks (mostly a part of Spectrum’s Standard TV package) combined with C-SPAN, public, educational, and government access channels, home shopping, and local over-the-air stations, to its internet-only customers for $24.95 a month (not including a $6/mo Broadcast TV Fee and an extra $4.95 a month for a cloud-based DVR service). The resulting bill of around $35-40 a month is at least $10 less than many streaming service providers that may not offer the exact channel lineup you are looking for.

The closest alternative is Sling TV, which has very slim packages of networks in three different configurations, ranging from $15-25 a month. But chances are, some channels you watch won’t be included.

Williams predicts that just three to five services will survive the consolidation wave or exit that is expected to be triggered by Sony’s decision to leave the marketplace. The services most vulnerable are likely those lacking a deep-pocketed, healthy corporate backer or those with the least market share.

An executive for one of PlayStation Vue’s rivals told Multichannel News Sony faced platform costs that “were simply too high.” Sony paid broadcast retransmission consent fees to local stations in every market the service was offered and also licensed popular, but very expensive regional sports channels. Sony also outsourced its streaming technology to Disney-owned BAMTech, among the more expensive platform providers.

As more paid streaming services debut, consumers have signaled they are increasingly willing to pirate their favorite shows and movies to save money.

A new survey conducted by Broadband Genie found the percentage of consumers willing to evade TV paywalls will double if content continues to be scattered across multiple streaming platforms.

Although the survey was confined to UK consumers, North Americans are also getting frustrated with the number of subscription services that are launching, because many of those same services are also responsible for removing content from popular services like Netflix. Consumers will need to subscribe to the new service to get that content back.

Like in North America, Netflix and Amazon Prime Video are the most popular paid streaming services in the United Kingdom, partly because they maintain very deep content libraries with thousands of movies and TV shows. But with content balkanization now underway, more and more customers are finding their favorite shows are no longer available on those platforms. At least 30% of UK consumers report one or more shows they want to watch are now only available from a service to which they do not subscribe.

“As more legal services have exclusive releases, it’s harder for people to get everything they want from one place,” Ernesto van der Sar of TorrentFreak told Broadband Genie. “Instead of signing up for paid subscriptions at a handful of services, which may go beyond one’s budget, some then turn back to piracy.”

At least 48% of those surveyed reported their single biggest frustration with streaming services is the growing number of them and their combined cost. About 37% indicated they were now willing to get content for free from unauthorized websites or file sharing networks that violate copyright law.

Many consumers report their budget for streaming television is already straining, yet almost a half-dozen new services are yet to launch, each priced between $7-15 a month. Recent price increases by Netflix and live TV streaming providers also complicate matters. Netflix’s own subscriber numbers are under stress after their latest price hike, which may signal a price ceiling. If content becomes too expensive or difficult to access, increased piracy will probably result.

Comcast is planning to debut its new streaming TV platform under the NBC “Peacock” brand next April with a lineup of original shows starring well-known talent including Alec Baldwin, Demi Moore, Christian Slater, and Ed Helms.

Peacock will most closely resemble the advertiser-supported Hulu platform, with 21 million Comcast cable television customers getting access for free. Comcast is reportedly also negotiating with other cable, satellite, and telco TV providers about bundling free basic Peacock subscriptions for their cable TV customers as well. Those who never subscribed to cable TV or cut the cord will be offered the option of a lower cost, commercial-filled subscription or a more expensive ad-free option, presumably at prices similar to what Hulu charges ($5.99-11.99).

Peacock’s subscription model is designed to protect Comcast’s cable TV revenue. For existing Comcast cable TV customers, giving ad-supported subscriptions away for free may add to the value proposition of keeping a cable TV subscription. By charging subscription fees to everyone else, Comcast is not ‘giving away the store for free.’ If it did, it could upset other pay television companies that are facing ever-rising retransmission consent fees and programming costs for Comcast/NBC-owned TV stations and cable networks including CNBC, MSNBC, and the USA Network.

Comcast is confident its long experience offering streaming TV Everywhere services including live streaming and on demand programming will mean it will not face the kinds of scaling mistakes other streaming services have had. Bonnie Hammer, the NBCUniversal executive appointed to run Peacock, believes the service’s deep content catalog, starting with 15,000 hours of NBC and Universal Studios TV shows and movies complimented with other acquired and original productions will give viewers plenty to watch.

“I’m not sure anybody else out there can do what we can do,” Hammer told the Wall Street Journal. “We expect to have great content and a great product [that] is really easy to use.”

In addition to scripted content, Peacock will also feature live and recorded news and sports programming from NBC.

Among the shows featured on the Peacock platform:

Original Drama Series

ANGELYNE (limited series)
Limited series based on The Hollywood Reporter feature that explored the identity of L.A.’s mysterious billboard bombshell.

BATTLESTAR GALACTICA
Battlestar Galactica reboot.

BRAVE NEW WORLD
Based on Aldous Huxley’s 1932 novel, Brave New World. The series envisions life in a utopian society that bans monogamy, privacy, money, and never discusses history.

DR. DEATH
Inspired by a podcast by the same name. Dr. Death follows the true story of Dr. Christopher Duntsch (played by Jamie Dornan), a rising star in the Dallas medical community who also emerges as a deadly sociopath. Duntsch’s successful neurosurgery practice gradually deteriorates into a horror show of permanently disabled or dead patients. Two fellow doctors, played by Alec Baldwin and Christian Slater, fight an entrenched medical bureaucracy designed to protect money-making doctors to get his practice shut down.

ONE OF US IS LYING (pilot)
Based on the novel One of Us Is Lying, the crime series follows the unfolding of events after five people spend an afternoon in detention, but only four leave alive.

UNTITLED REAL HOUSEWIVES SPINOFF (no details provided)

Original Comedy Series

A.P. BIO (Season 3)
Picks up where the original NBC TV series left off. When disgraced Harvard philosophy professor Jack Griffin (Glenn Howerton) loses out on his dream job to his rival Miles Leonard (Tom Bennett), he is forced to return to the small town Toledo, Ohio and work as an advanced placement biology teacher at the fictional Whitlock High School. Jack makes it clear to his class that he will not be teaching any biology. Realising he has a room full of honor-roll students at his disposal, Jack decides to use them for his own benefit: getting revenge on Miles. Eager to prove that he is still king of the castle, Principal Durbin (Patton Oswalt) struggles to keep Griffin under control.

PUNKY BREWSTER (pilot)
This continues of the iconic 80s sitcom about a bright young girl raised by a foster dad features Punky as a now single mother of three trying to get her life back on track when she meets a young girl who reminds her a lot of her younger self.

RUTHERFORD FALLS
A small town in upstate New York is turned upside down when local legend and town namesake, Nathan Rutherford (Ed Helms) fights the moving of a historical statue.

SAVED BY THE BELL (reboot)
When California governor Zack Morris gets into hot water for closing too many low-income high schools, he proposes they send the affected students to the highest performing schools in the state – including Bayside High. The influx of new students gives the over-privileged Bayside kids a reality check.

STRAIGHT TALK
Straight Talk examines what happens when two opposing ideologies are forced into an odd coupling. The main characters will be challenged by one another, making the moral lines at which they once stood harder to define.

Original Unscripted Shows 

THE AMBER RUFFIN SHOW
A weekly show featuring Amber’s “signature smart-and-silly take on the week.” The show will de-emphasize talking with guests and spend more time on comedy routines.

WHO WROTE THAT
A docuseries designed to showcase Saturday Night Live’s comedy writers.

Original Made-for-Peacock TV Movie

PSYCH 2: LASSIE COME HOME
Based on the USA Network show Psych, Santa Barbara Police Chief Carlton Lassiter is ambushed on the job and left for dead. In a vintage Psych-style Hitchcockian nod, he begins to see impossible happenings around his recovery clinic. Shawn and Gus return to Lassie’s side in Santa Barbara and are forced to navigate the personal, the professional, and possibly the supernatural. Separated from their new lives in San Francisco, our heroes find themselves unwelcome in their old stomping grounds as they secretly untangle a twisted case without the benefit of the police, their loved ones, or the quality sourdough bakeries of the Bay Area. What they uncover will change the course of their relationships forever.

Legacy Shows in the Peacock Catalog

Bates Motel
Brooklyn Nine-Nine
Cheers
Chrisley Knows Best
Covert Affairs
Downton Abbey
Everybody Loves Raymond
Frasier
Friday Night Lights
House
Keeping Up with the Kardashians
The King of Queens
Married … with Children
Monk
Parks and Recreation (exclusive, available Oct. 2020)
Parenthood
The Office (exclusive, available Jan. 2021)
Psych
The Real Housewives
Royal Pains
Saturday Night Live
Superstore
30 Rock
Top Chef
Will & Grace
100 Dias Para Volver (Spanish-language)
Betty in NY (Spanish-language)
El Barón (Spanish-language)
Preso No. 1 (Spanish-language)

Peacock’s Legacy Movies Catalog

American Pie
Back to the Future
A Beautiful Mind
Bourne franchise
The Breakfast Club
Bridesmaids
Brokeback Mountain
Casino
Dallas Buyers Club
Despicable Me franchise
Do the Right Thing
Erin Brockovich
E.T. The Extra Terrestrial
Fast & Furious
Field of Dreams
Jaws
Knocked Up
Mamma Mia!
Meet the Fockers
Meet the Parents
Shrek

Charter Communications is contemplating tying piracy mitigation to renewed contracts with movie studios, cable networks, and other programmers in an effort to enforce a new authentication standard to stop password sharing on streaming services like Netflix, Hulu, Disney+, and CBS All Access.

The cable company is trying to build an alliance that will enforce authentication principles on subscribers that share passwords to streaming services. Walt Disney is the only programmer to sign on thus far, agreeing to Charter’s piracy mitigation strategies for its Disney+ service in return for a renewed contract to distribute Disney programming on Spectrum cable systems.

Thomas Rutledge, Charter’s CEO, has spoken frequently about revenue erosion caused when consumers share their streaming accounts with friends and extended family members. Spectrum enforces geofencing on its subscribers, prohibiting access to certain streamed content outside of the home. Rutledge has not been specific about exactly what types of limitations would be imposed under the new strategy, but examples could include geofencing, periodic location checks, and limits on the number of devices authorized to view content.

“Ultimately our goal is that we can get an alliance of a large enough group of programmers and operators to protect the value of the content that people produce and the content that we distribute and we pay for,” Chris Winfrey, Charter’s chief financial officer, said last week at the Bank of America Merrill Lynch 2019 Media, Communications & Entertainment Conference in Beverly Hills.

Winfrey severely criticized programmers that turn a blind eye to the practice of password sharing, claiming such practices are “insane.”

“To think that it doesn’t impact the way we get paid, it does,” Winfrey said. “And it conditions the entire marketplace to think that content should be devalued, it should be free, and that’s the way it is and I shouldn’t have to pay for it. It’s our firm belief that we’d be growing and growing significantly [if it wasn’t for password sharing].”

The Wall Street Journal believes the majority of Americans are paying for internet speed they never use or need, but their investigation largely ignores the question of traffic bottlenecks and data caps that require many customers to upgrade to premium tiers to avoid punitive overlimit fees.

The newspaper’s examination was an attempt to test the marketing messages of large cable and phone companies that claim premium speeds of 250, 500, or 1,000 Mbps will enhance video streaming. A total of 53 journalists across the country performed video streaming tests over a period of months, working with researchers at Princeton University and the University of Chicago to determine how much of their available bandwidth was used while streaming videos from Netflix, Amazon Prime Video, YouTube and other popular streaming services.

Unsurprisingly, the newspaper found most only need a fraction of their available internet speed — often less than 10 Mbps — to watch high quality HD streaming video, even with up to seven video streams running concurrently. That is because video streaming services are designed to produce good results even with lower speed connections. Video resolution and buffering are dynamically adjusted by the streaming video player depending on the quality of one’s internet connection, with good results likely for anyone with a basic broadband connection of 10-25 Mbps. As 4K streams become more common, customers will probably get better performance with faster tiers, assuming the customer has an unshaped connection that does not throttle video streaming speeds as many mobile connections do and the streaming service offers a subscription tier offering 4K video. Netflix, for example, charges more for 4K streams. Some other services do not offer this option at all.

Image: WSJ

WSJ:

For most modern televisions, the highest picture clarity is the “full” high-definition standard, 1080p, followed by the slightly lower HD standard, 720p, then “standard resolution,” 480p. The Journal study found a household’s percentage of 1080p viewing had little to do with the speed it was paying for. In some cases, streaming services intentionally transmit in lower resolution to accommodate a device such as a mobile phone.

When all HD viewing is considered—1080p and 720p—there were some benefits to paying for the very highest broadband tiers, those 250 Mbps and above.

Streaming services compress their streams in smart ways, so they don’t require much bandwidth. We took a closer look at specific services by gathering data on our households’ viewing over a period of months. Unlike the “stress test,” this was regular viewing of shows and movies, one at a time.

Netflix streamed at under 4 Mbps, on average, over the course of a show or movie, with not much difference in the experience of someone who was paying for a 15 Mbps connection and someone with a one gigabit (1,000 Mbps) connection. The findings were similar for the other services.

There is a brief speed spike when a stream begins. Netflix reached the highest max speeds of the services we tested, but even those were a fraction of the available bandwidth.

Users watching YouTube might launch a video slightly faster than those watching Netflix, and at lower resolution, but this is a function of how those services work, not your broadband speed, the researchers said.

Whereas Netflix tries to load “nice high quality video” when you press play and hence has higher spikes, YouTube appears to “want to start as fast as possible,” said Paul Schmitt, one of the researchers.

A spokeswoman for Alphabet Inc.’s YouTube said the service chooses playback quality based on factors including type of device, network speed, user preferences and the resolution of the originally uploaded video. A Netflix Inc. spokeswoman said the company aims to deliver quality video with the least possible bandwidth. Amazon.com Inc. had no comment.

The Journal finds little advantage for consumers subscribing to premium speed tiers, if they did so hoping for improved streaming video. The unanswered question is why customers believe they need faster internet speeds to get those improvements in the first place.

The answer often lies in the quality of the connection between the streaming provider and the customer. There are multiple potential bottlenecks that can make a YouTube video stutter and buffer on even the fastest internet connection. Large providers have had high profile disputes with large streaming companies over interconnection agreements that bring Netflix and YouTube traffic to those internet service providers’ customers. Some ISPs want compensation to handle the increasing amount of incoming video traffic and have intentionally not allowed adequate upgrades to keep up with growing subscriber demand. This creates a traffic bottleneck, usually most noticeable at night, when even a small YouTube video can get stuck buffering. Other streaming videos can suffer from repeated pauses or deteriorate into lower resolution video quality, regardless of the speed of your connection.

Another common bottleneck comes from oversold service providers that have too much traffic and not enough capacity to manage it. DSL and satellite internet customers often complain about dramatic slowdowns in performance during peak usage times in the evenings and on weekends. In many cases, too many customers in a neighborhood are sharing the connection back to the phone company. Satellite customers only have a finite amount of bandwidth to work with and once used, all speeds slow. Some other providers do not pay for a large enough pipeline to the internet backbone, making some traffic slow to a crawl when that connection is full.

Customers are sold on speed upgrades by providers that tell them faster speeds will accommodate more video traffic, which is true but not the whole answer. No amount of speed will overcome intentional traffic shaping, an inadequate connection to the video streaming service, or an oversold network. Too bad the Journal did not investigate these conditions, which are more common than many people think.

Finally, some customers feel compelled to upgrade to premium tiers because their provider enforces data caps, and premium tiers offer larger usage allowances. Cable One, Suddenlink, and Mediacom customers, among others, get a larger usage allowance upgrading. Other providers offer a fixed cap, often 1 TB, which does not go away unless a customer pays an additional monthly fee or bundles video service.

Data caps are a concern for video streaming customers because the amount of data that can be consumed in a month is substantial. As video quality improves, data consumption increases. The Journal article does not address data caps.

Finally, the Journal investigation confined itself to video streaming, but internet users are also increasingly using other high traffic services, especially cloud backup and downloading, especially for extremely large video game updates. The next generation of high bandwidth internet applications will only be developed if high speed internet service is pervasive, so having fast internet speed is not a bad thing. In fact, providers have learned it is relatively cheap to increase customer speeds and use that as a justification to raise broadband prices. Other providers, like Charter Spectrum, have dropped lower speed budget plans to sell customers 100 or 200 Mbps service, with a relatively inexpensive upgrade to 400 Mbps also gaining in popularity.

Does the average consumer need a premium speed tier for their home internet connection? Probably not. But they do need affordable unlimited internet service free of bottlenecks and artificial slowdowns, especially at the prices providers charge these days. That is an investigation the Journal should conduct next.