I posted this in the TV Binging thread here at MR:
This got me thinking... The landscape of traditional television entertainment is obviously changing and it's going to be interesting to see how it plays out. The entertainment industry is fighting for your "screen time" and they are coming to the realization that the TV is merely one of the screens that you own.
People have been clamoring for more choice in the traditional cable/satellite programming model. We have various threads here at MR about "cutting the cord" or wanting "a la carte programming options" and the emergence of options like iTunes, Netflix, Amazon Prime, Hulu, and most recently HBO Now, shows that the reality of that possibility is on the way.
Like most of us, I don't watch anywhere close to all that comes in my cable (Uverse) subscription. There are channels I'm sure I've never watched. With budget in mind, we don't pay the extra for premium movie channels or additional packages. We do pay for Netflix and Amazon Prime and are enjoying what those services provide. I do stay on top of our billing with At&t and speak with customer service to get the best possible deal available and our cable and internet bill at present is around $125 a month. Do I want more for less, you bet I do.
I wonder though... is this one of those situations in life where "getting what you want" is going to "cost you in the end". The traditional entertainment model has been supported by advertising through commercials and all of us complain about commercials. Getting a DVR years ago completely changed my watching habits and patterns (I could finally skip commercials, awesome!). Those routines have changed even more with the ability to "binge watch" shows on Netflix and similar services (No commercials and I don't have to wait for new episodes each week, double awesome!). We sure do love our immediate gratification don't we.
My concern is that the new model of media delivery is ultimately going to be more expensive than our current model. HBO Now is $15 a month. Netflix is $8+ a month. Amazon Prime is $99 a year. The new rumored Apple TV service is estimated to be around $30 or $40 a month. I looked at the new season of a popular show on iTunes and the season pass was $25. If I get two shows a month then I'm paying more than what I pay now for the entire cable television part of my bill and that's just to watch two shows. When you start adding up all the individual fees it seems very likely that just "watching what I want to watch" is going to end up costing me way more on a monthly basis then what I pay now. And, let's not forget I'm still going to have to pay a service provider for internet so that I can access all of my a la carte choices.
All the major players are starting to create their own content instead of just being a vehicle for the media content of others, HBO, Showtime, Starz, Netflix, etc.. I've heard that Amazon Prime is actually producing pilots of original content and letting viewers vote on which shows will actually make it to production. In my general cable package we enjoy programming from BBC, AMC, Food Network, MTV, Comedy Central, History Channel, Nat Geo, ESPN, HGTV, etc.. If all of these networks went the route of HBO Now then there is no way I would be able to afford them all.
Ultimately, if the support of the advertising dollar is going to go away then the premium for content is going to go up. I think the film industry is a good example of this. Seeing a movie is getting direct access to premium content with no commercials. We all remember when you could see a movie for a few bucks, but now the cost of a ticket can easily be $10+. I think bundling is going to be necessary in some form in order to keep costs down. It will be interesting to see how all of this plays out.
What do you think?
I've got to say that I have been impressed with the original programming we are seeing from Netflix. Shows like House of Cards, Hemlock Grove, Orange is the New Black, Dreamworks Dragons (for the kids), and most recently Daredevil and Bloodline have all been really good.
This got me thinking... The landscape of traditional television entertainment is obviously changing and it's going to be interesting to see how it plays out. The entertainment industry is fighting for your "screen time" and they are coming to the realization that the TV is merely one of the screens that you own.
People have been clamoring for more choice in the traditional cable/satellite programming model. We have various threads here at MR about "cutting the cord" or wanting "a la carte programming options" and the emergence of options like iTunes, Netflix, Amazon Prime, Hulu, and most recently HBO Now, shows that the reality of that possibility is on the way.
Like most of us, I don't watch anywhere close to all that comes in my cable (Uverse) subscription. There are channels I'm sure I've never watched. With budget in mind, we don't pay the extra for premium movie channels or additional packages. We do pay for Netflix and Amazon Prime and are enjoying what those services provide. I do stay on top of our billing with At&t and speak with customer service to get the best possible deal available and our cable and internet bill at present is around $125 a month. Do I want more for less, you bet I do.
I wonder though... is this one of those situations in life where "getting what you want" is going to "cost you in the end". The traditional entertainment model has been supported by advertising through commercials and all of us complain about commercials. Getting a DVR years ago completely changed my watching habits and patterns (I could finally skip commercials, awesome!). Those routines have changed even more with the ability to "binge watch" shows on Netflix and similar services (No commercials and I don't have to wait for new episodes each week, double awesome!). We sure do love our immediate gratification don't we.
My concern is that the new model of media delivery is ultimately going to be more expensive than our current model. HBO Now is $15 a month. Netflix is $8+ a month. Amazon Prime is $99 a year. The new rumored Apple TV service is estimated to be around $30 or $40 a month. I looked at the new season of a popular show on iTunes and the season pass was $25. If I get two shows a month then I'm paying more than what I pay now for the entire cable television part of my bill and that's just to watch two shows. When you start adding up all the individual fees it seems very likely that just "watching what I want to watch" is going to end up costing me way more on a monthly basis then what I pay now. And, let's not forget I'm still going to have to pay a service provider for internet so that I can access all of my a la carte choices.
All the major players are starting to create their own content instead of just being a vehicle for the media content of others, HBO, Showtime, Starz, Netflix, etc.. I've heard that Amazon Prime is actually producing pilots of original content and letting viewers vote on which shows will actually make it to production. In my general cable package we enjoy programming from BBC, AMC, Food Network, MTV, Comedy Central, History Channel, Nat Geo, ESPN, HGTV, etc.. If all of these networks went the route of HBO Now then there is no way I would be able to afford them all.
Ultimately, if the support of the advertising dollar is going to go away then the premium for content is going to go up. I think the film industry is a good example of this. Seeing a movie is getting direct access to premium content with no commercials. We all remember when you could see a movie for a few bucks, but now the cost of a ticket can easily be $10+. I think bundling is going to be necessary in some form in order to keep costs down. It will be interesting to see how all of this plays out.
What do you think?
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