Category Archives: Cord Nevers

Cord Nevers

Cable TV Industry Threatened by OTT

cableOne of the hot issues being discussed in this weeks Los Angeles Cable TV Show is the pressure Cable TV operators are faced with in terms of end-user authentication issues and from Over The Top TV, which is Television that consumers consume straight from the internet such as Hulu, Netflix and Crackle.

An excerpt from Fiercecable illustrates some of the discussion taking place:

Skipper called upon the cable industry to do a better job of selling its offerings to consumers. “Shame on us if we don’t work to sell the value of a pay subscription and a triple-play.  We are allowing them [OTT players] to set the tone of the conversation. We should be saying we have a better product.”

Skipper also called for a tighter partnership between programmers and distributors, noting that initiatives like TV Everywhere are not progressing as quickly as they should and that’s impacting the customer experience.

In fact, improving authentication on TV Everywhere services was a recurring complaint among the programmers on the panel. “I wish our cable partners would look at how to make the customer experience better,” said Nancy Dubuc, president and CEO of A&E Networks. “That part of the partnership needs to be solidified.”

While this debate heats up, Singaporean Cable TV Operator StarHub has just released the first of 3 new cable-based Set Top Boxes for the Singapore consumer TV market. But why? Why not continue down the OTT path?

The folks at Techgoodnu seem to have a good answer for why, they explain as follows:

Why has StarHub invested more money on set-top boxes, when people are already watching TV on all sorts of personal and mobile devices? And this when StarHub itself already has similar “over-the-top” services delivered over the Net rather than the old cable network?

The answer, as one might predict, has to do with content partners. StarHub cannot afford to open up that fast, just as partners that provide it TV content are worried they will lose this well-established way of delivering content.

But everyone knows that things are changing. In the past, set-top boxes were important to secure the content delivered to homes, so people cannot easily record it onto their own devices.

That’s silly now, if you just look up all the pirated content on Piratebay, for example. If you create a popular TV programme, expect your content to be pirated, set-top box or no.

The debate is interesting, but it is clear that cable TV operators need to do both, continue to enrich and improve the Cable delivery experience, while also embracing OTT and the wealth of new content it can offer.

TV Reaches Tipping Point in 2014

digital-trends-20142014 is the year TV will change most dramatically, according to Business Insider and eMarketer, and reach a “tipping point”, which is where is the point at which a series of small changes or incidents becomes significant enough to cause a larger, more important change.

Specifically, 50% or more US internet users, will consume digital TV online; through mobile devices, tablets and laptops in the US this year. The significance of this metric is explained by the Verge, who makes a compelling case a that US Network TV is nearing collapse.

Interestingly, no one is thinking to measure how much second screen or media stacking could be having an effect on the how much consumers are ad skipping. Nielsen themselves are giving the numbers. When do you think viewers actually use their mobile devices? During commercials of course.

• In US, 77% use TV & internet simultaneously (Nielsen)

• 86% of US smartphone and 88% of tablet owners use it while watching TV once a month (Nielsen)

• 45% use their tablet while watching TV daily (Nielsen)

• 44% of total tablet usage is while watching TV (Nielsen)

• 62% of TV viewers pick up the phone as soon as TV advertising break starts. (Nielsen)

As smartphones and tablets become more ubiquitous, this behaviour is only going increase. Not only are audiences shrinking, but those that are still there are, between PVR and media stacking, are apparently not watching or paying attention much to 30 second spots.

Full Story at the Verge: http://www.theverge.com/2014/1/11/5299736/is-american-network-tv-facing-collapse

 

 

List of Netflix Movies and Shows Purged 2014

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Netflix has announced a whole lot of movies and TV shows that will be discontinued from their service starting January 2014. Here is the complete list:

TV Shows

Expiring Jan. 1, 2014

  • Dark Shadows

(original from late 1960s)

  • Saturday Night Live The 2000s
  • Mr Bean
  • The Kids In The Hall
  • Perfect 10 Model Boxing

(Volume 1)

 

Movies

Expiring Dec. 29, 2013

  • Transformers Dark Of The Moon

Expiring Jan. 4, 2014

  • Alice In Wonderland

(1951 Disney)

  • Immortals
  • Dynamite Warrior

 

Jan. 1, 2014

  • The Rundown
  • Brick
  • Being John Malkovich
  • Back To School
  • Battle Of Britain
  • Born On the Fourth Of July
  • Braveheart
  • Body Of Evidence
  • Breakin’ 2: Electric Boogaloo
  • Man On The Moon
  • Lionheart
  • 1492 Conquest Of Paradise
  • Killer Klowns From Outer Space
  • Eternal Sunshine Of The Spotless Mind
  • FX
  • Do The Right Thing
  • Desperado
  • Up In Smoke
  • Can’t Hardly Wait
  • Capote
  • Biloxi Blues
  • Seed Of Chucky
  • Jarhead
  • As Good As It Gets
  • In The Name Of The Father
  • Inside Deep Throat

(documentary)

  • I’m Gonna Get You Sucka
  • In Like Flint
  • Hard Target
  • Foxy Brown
  • Frankenstein And The Monster From Hell
  • Gallipoli
  • Half Baked
  • Flashdance
  • 50 First Dates
  • For The Love Of The Game
  • The Best Little Whorehouse In Texas
  • The Bad News Bears
  • The Russia House
  • The Secret Of Nimh
  • Revenge OF The Ninja
  • Roman Holiday
  • Rob Roy
  • Jay And Silent Bob Strike Back
  • Remo Williams
  • Requiem For A Dream
  • Quigley Down Under
  • Pumpkinhead
  • Platoon
  • Once Upon A Time In Mexico
  • October Sky
  • Mystery Men
  • The Skulls
  • Titanic
  • Ronin
  • Romeo And Juliet

(1968)

  • Tales From The Crypt: Bordello Of Blood
  • Tales From The Crypt: Demon Knight
  • The Woman In Red
  • Top Gun
  • Street Fighter
  • TNT Jackson
  • Serpico
  • Seed Of Chucky
  • Scary Movie
  • Running Scared
  • Troll II
  • True Grit

(1969)

  • War And Peace
  • Talk Radio
  • War Games
  • We Were Soldiers
  • What Dreams May Come
  • Windtalkers
  • World Trade Center
  • The Private Life Of Sherlock Holmes
  • The Odd Couple

(1968)

  • The Mask Of Zorro
  • The Great Train Robbery
  • The Faculty
  • The Dream Team
  • Best Of Times
  • Stop! Or My Mom Will Shoot
  • Species

Source: http://mashable.com/2013/12/28/netflix-purge-january-1/?utm_cid=mash-com-fb-main-link

Pay-TV See’s Worst Year Ever

Time Warner Cable TrucksIt has been the worst recorded year of subscriber attrition for Pay TV operators in the USA due to Cord-Cutters, which have ironically have slowed in pace last quarter, Cord-Never’s, a still sluggish housing market, and a lack of new household formations. According to the LA Times:

Michael Nathanson calculated that the pay-TV industry — which includes cable, satellite and phone companies offering video service — lost 113,000 subscribers during the third quarter.

Cable operators lost 687,000 subscribers in the period, according to their estimates. That was a far steeper decline than the year-ago period.  And though the satellite TV and telephone companies picked up about 574,000 subscribers, it wasn’t enough to erase the net loss for the industry.

“The pay-TV industry has reported its worst 12-month stretch ever,” Moffett and Nathanson wrote.

Also noteworthy is that Time Warner Cable lost more than 300,000 Subscribers just in Q3. The Cable wireless industry is below 3%, while the pay-TV industry’s revenue growth is 5.1%. But if Pay-Tv growth is still strong at over 5%, how can this be the worst year on record? According to Yahoo Finance:

“Of course, the fact that pay-TV revenue is still rising smartly is part of the problem,” Moffett and Nathanson wrote. “We have always argued that cord-cutting is an economic phenomenon, not a technological one. … Pay-TV revenue growth reflects rapid pay-TV pricing growth and that is precisely the problem. Rapidly rising prices are squeezing lower-income consumers out of the ecosystem.”

IPTV and Internet Video $35 Billion by 2018

Source: Digital TV Research

Source: Digital TV Research

The numbers are in, and they are big. According to Online TV and Video Forecasts report from Digital TV Research, Online TV and video revenues worldwide, over fixed broadband networks, is expected to reach $34.99 billion in 2018, an increase of over $30 billion from 2010′s recorded $3.98 billion in revenue.

According to the Online TV and Video Forecasts report from Digital TV Research. By 2018, 520 million homes in 40 countries will watch online television and video, up from 182 million in 2010. And
OTT is expected to increase substantially as many players in the industry expand internationally.

According to the Online Video and TV forecast:

Online TV and video advertising has been the key driver for the OTT sector, with revenues of $7.4 billion expected in 2013, up from $2.4 billion in 2010. Rapid advertising expenditure growth will continue, to reach a global total of $16.4 billion in 2018. However, advertising’s share of total OTT revenues will fall from 60.6% in 2010 to 46.9% in 2018.

The fastest growing paid-for OTT revenue stream will be subscription services. Although the likes of Netflix and Hulu Plus are already reasonably well established as streaming subscription services in North America, international markets have been relatively untouched – until now.

Online television and video subscription revenues (SVOD) will soar from $1 billion in 2010 to $6 billion in 2013 and onto $13 billion in 2018. The number of homes paying a monthly fee to receive SVOD packages will climb from 21.9 million in 2010 to 67.8 million by end-2013 and onto 160.6 million in 2018.

Subscription TV services will slow the Video On Demand and Pay Per View market as they offer similar value propositions. Yet, IPTV and video on demand and pay-per-view revenues are expected to increase precipitously from $207 million in 2010 to $2,103 million in 2018.

Will OTT Kill Pay-TV?

kill-tvAnalysts have been wondering if the availability of every-increasing free Over The Top television content from online sources will eventually kill the Pay TV industry… The answer is, “no”, at least not in the Western European Union.

According to a recent report by Analysis Mason research house as posted in Telecomms EMEA,Pay TV subscribers are set to grow from 9.2m to 113.3m over the next 5 years from 2013 to 2018. During this time period, OTT services will indeed grow faster, but only to approximately 5.6m users.

Cesar Bachelet, senior analyst at Analysis Mason, explains that users are unlikely to abandon pay-TV services for OTT equivalents, but notes the effect of OTT services will be most heavily felt on secondary TV sets.

IPTV users will grow from 6.2m to 27.6m and satellite users from 1.1m to 31.6m. Analog Cable subscribers will contract by 2.9m, from 46.5m down to 43.6m, while Direct to TV (DTT) users will drop by half a million users from 5.4m to 4.9m.

Is Pay TV Worth the Money?

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According to a recent survey conducted in the US by CouponCabin.com, 45% of people think paying for TV is a complete waste of their money.  Of the respondents, 11% said they’ve cut the cord on their subscriptions, and 8% said they never had one to begin with.

Not surprisingly, 43% of those who have chosen to keep their subscriptions say its solely because of sports, and 15% of subscribers said they would never consider cutting the cord.  Because of this demand, one can deduce that sports broadcasting rights account for a large portion of the ridiculous monthly bills people are willing to pay. 

Jim O’Neill says subscribers’ are willing to cut the cord if certain conditions present themselves:

“Of course, never say never… because, among current subscribers:

  • 56% said they’d cut the cord if there were other, less costly, alternatives.
  • 55% said they’d cut the cord if they could no longer afford it. And,
  • 17% would jump is there were alternative ways to watch live broadcasts.”

Customer service is also a huge issue, with the goal being to find a service that is the least infuriating to deal with.  The goal as a provider, then, is to form a system that minimizes customer distress, as an executive at Rogers Communications attests:

“The truth is: We’ve been in the business long enough to have annoyed every one of our customers at one point or another. It kind of goes with the territory.”

Full article at theConvergence.tv

OTT and Mobile Viewing Continue Growth

X-Platform-Image

While traditional TV remains the primary medium for video entertainment, innovation from companies such as Netflix is convincing more and more viewers that OTT and/or mobile viewing is the way to go.  Netflix recently announced that starting in August it will provide different user profiles for the same account, which will allow users to receive personalized TV or movie recommendations without having to sift through unwanted material provided for other users on the same account.

Such innovations are the driving force behind the growth of Internet and OTT video, which has grown by 54%, while a Nielsen report says the average daily viewing of live TV in the U.S. decreased from 4 hours and 47 minutes in 2009 to 4 hours and39 minutes in 2013.

 

Substituting OTT viewing for one’s traditional cable subscription, or cord-cutting, is becoming popular enough to threaten TV viewing, according to Jim O’Neill:

 

 

“Five years ago, a common mantra in the industry was that cord cutting among pay-TV subscribers was just a blip, caused by woeful economic conditions exacerbated, perhaps, by the rising cost of subscriptions to premium and basic services.

 

Last month, one of the analysts that had long held that view…released a report that not only acknowledged cord cutting was real, but also said it could morph into a significant threat.”

 

While OTT providers such as Netflix, Hulu, and Amazon clearly cannot compete with traditional TV on events such as major sports competitions or the evening news, they are threatening to wrest the day-to-day viewing market from the grip of live television.