They won't. Much like HBO's tease, the key thing to notice is no discussion of pricing. And much like HBO, my guess will again be about 2-3 times what Starz costs now in bundled cable. If CBS is going to try to go with $6/month for what is thought of as a free channel or a basic cable channel, these "premium" channels are going to charge more-to-a-lot-more than that.
Assuming the cbs option is on demand and commercial free, would you pay $6 to replace the advertisers?
Assuming the cbs option is on demand and commercial free, would you pay $6 to replace the advertisers?
I'd rather just download the shows I want to watch directly through the iTunes store, no need for live TV, everything should just be on demand in this day and age.
I'd rather just download the shows I want to watch directly through the iTunes store, no need for live TV, everything should just be on demand in this day and age.
That would require a complete change in the current model. Right now ads are sold by networks based on neilson ratings at specified time slots. If 10 million people watch a show at 9pm, they can market that to advertisers.
I do that for Doctor Who instead of paying an extra $10/month to get the tier with BBC America included (which was basically the only reason to get that tier). I'll pay $40-$50/year over $120/year and have permanent access to the shows in my library any time.
Now, with a true ala carte system, I wouldn't expect to pay $40 for every show - a good chunk of that is buying permanent access - but for things I want to just watch once, I could see in the neighborhood of $5-$15 per show per season being reasonable, depending on factors such as show and season length and costs of production, etc.
Think about it... if you're paying $100/month for cable and the average show costs, let's be conservative and go higher than my estimates above, $20/season, then over the course of a year you could get 60 different ala carte shows for the same price as your cable subscription.
LOL CBS $6 a month, can't you get CBS over the air pretty much anywhere?
Don't worry, when we are paying $150+ a month for capped internet we will all be laughing
There, you see the business math problem of this al-a-carte dream clashing with the oft-spun want by us consumers of "everything we want, whenever we want it, commercial-free" for about $5/month... or $10/month... or $20 or $29. In all of these al-a-carte threads, I just about NEVER see anyone talking about wanting to pay more than about $29. Most are dreaming at <$10 or <$20/month. And this begins to show why the actual math is so incompatible with the dream.
You are most likely already paying for capped internet. Take a look at your contract, it's probably something like 200-300 GB. Shocked me when I saw that in mine
In any scenario including the dream "al-a-carte" scenario, the cable company is still going to get their. If they currently sell cable for $100 and broadband for $50 and someone like Apple eats up their $100 with a "new model" replacement that depends on the cable company's broadband pipe, I fully expect broadband pricing to rise to $150 or more (to make up the loss). When a company has a monopoly or a duopoly in some cases, there's little to stop them from getting theirs no matter what. With little to no competition in most places, where you going to go?
Actually if I could pick and choose the channels I wanted instead of having to buy a whole raft of channels I don't want I might see more value in that $30-$40 a month for the channels you have to buy, but with the way cable works at present you're pretty much stuck buying what you don't want in order to get a couple of channels you do want which is why I got rid of it in the first place. The way it's run is a con from the beginning and I do hope digital streaming starts to break that down a bit.
Right and that will come with any mass migration to kill cable revenues and replace them with on-demand streaming. Can they do that with broadband pricing? Why not? If their pipe? For many, there's no competition to pressure prices down? Where there is competition, that competition is typically also in the cable TV subscription business so they too will want to make up for lost revenues. The model that is replacing their cable TV model is entirely dependent on their broadband pipe. What would you do if you were them?
But wouldn't it be illegal or something? Cellular bandwidth has already set the precedence of tiered pricing and charging more for "heavier bandwidth users". Some of these wired broadband companies are those very same wireless broadband companies.
But what about the Gov? Won't they step in and prevent cable from raising broadband rates? Would that be like they prevented cellular companies from pinching wireless broadband with tiered pricing?
In any scenario including the dream "al-a-carte" scenario, the cable company is still going to get their. If they currently sell cable for $100 and broadband for $50 and someone like Apple eats up their $100 with a "new model" replacement that depends on the cable company's broadband pipe, I fully expect broadband pricing to rise to $150 or more (to make up the loss). When a company has a monopoly or a duopoly in some cases, there's little to stop them from getting theirs no matter what. With little to no competition in most places, where you going to go?
A couple of problems with this dire prediction. That $100 cable bill isn't pure profit to the cable companies; they incur a lot of cost to gain that $100 of revenue. If they make more than 15% profit on that, I'd be surprised, and it's the profit they'll primarily be looking to replace.
Secondly, you either have competition or you're regulated. Or both. Cable companies in monopoly areas typically have to go to a government or quasi-government board to get rate changes approved. That type of board is quite unlikely to approve a doubling or tripling of cost.
I agree.
I will wait for the al-a-carters to start their complaining how incovenient it is to keep up with all the individual al-a-carte payments and wish there was a central service to group all the payments into one neat site. Of course that site, apple or ( ) will set a charge and people will be happy to pay the convenience charge.
Right back where everyone started.
Of course internet providers will jack the rates and compensate for loses. Then for their customers bundle services at or a lower rate than third party al-a-cartes and broadband provided service.
Relative to the Gov preventing the cable company from raising broadband rates, you have much more faith in Gov looking out for the little guy than I do. Again, I look to the wireless broadband business where so much of this has just gone down. Did the Gov do anything when the Verizons & AT&Ts implemented tiered pricing for "higher bandwidth users"? Many people's wired broadband service are fed by Verizon & AT&T (along with Comcast and others). When the wired companies switched from "unlimited*" to actually publishing a cap, did the Gov do anything?
HBO is going to be around $15/mo.What does a Starz or HBO package cost in cable "as is"? Usually about $15/month. So if basic cable is about $15/month and it includes the "big 4" and Starz doubles that price to add it in, how does Starz and HBO get priced when the big 4 streaming is priced at $24? I think at least $35-$50/month but maybe they'll get very aggressive (relatively) down toward $29/month. Big 4 at $24 plus a Starz or HBO at $30 = $54 for just that set of channels. What about ESPN? What about TNT? What about USA, Food, Comedy Channel, TBS, WGN, CNN, FOX, VH1, your neighbors favorite, their neighbors favorite and so on?
And there, you see the business math problem of this al-a-carte dream clashing with the oft-spun want by us consumers of "everything we want, whenever we want it, commercial-free" for about $5/month... or $10/month... or $20 or $29. In all of these al-a-carte threads, I just about NEVER see anyone talking about wanting to pay more than about $29. Most are dreaming at <$10 or <$20/month. And this begins to show why the actual math is so incompatible with the dream.
It already is, with no restrictions. They are basically competing with free, and failing horribly at it. You get a better experience with a pirated service. It shouldn't be that way but it is.I'd rather just download the shows I want to watch directly through theiTunesBitTorrent store, no need for live TV, everything should just be on demand in this day and age.
Its going to cost the same as with cable. The reason is that HBO is totally different from CBS or ESPN. HBO doesn't have commercials, and isn't part of basic cable. People buy HBO solely for the content. The partnership with Cable gives HBO more exposure and subscribers while the cable company gets part of the profit from HBO. HBO is already al a carte within cable. They are just going to expand it outside of cable.They won't. Much like HBO's tease, the key thing to notice is no discussion of pricing. And much like HBO, my guess will again be about 2-3 times what Starz costs now in bundled cable. If CBS is going to try to go with $6/month for what is thought of as a free channel or a basic cable channel, these "premium" channels are going to charge more-to-a-lot-more than that.
If Starz is about $12-$18 in your cable bundle now, they won't want to alienate the big partner where most of their money is made. So I guess pricing will be something toward adult channel pricing in the $35-$50/month range, buy maybe rolling out at $29.99/month. I know that looks crazy but just think it through:
-CBS at $6/month.
-Does that put the "big 4" at $24/month for just the big 4 networks?
-If basic cable that would include the local big 4 costs about $15/month now and adding the Starz premium channel to basic would cost $15 more per month, does the Starz online offering pricing come out at $24 times 2? $24 times 1.5? $24?
It just doesn't seem likely to me that it could be priced near what it is priced at within the bundled cable deal, so it seems it must start at something north of $18/month. Would Starz be priced at less than the "big 4"?
People show they are willing to pay up for individual adult channels in that range. Even something like WWE is getting $10-$13/month for only wrestling programming, most of which is already long since in the can.
Now think about a Starz vs. that. Then think about an ESPN vs. that. Then think about TNT. And so on.
I love the al-a-carte dream as much as the next guy but the reality seems like it would not involve us paying a lot less for just what we want... unless just what we want is very, very little. Around here, the chorus is usually talking about wanting to pay $5, $10, $20 or maybe $29/month to get everything they want, commercial-free. Take that $20 divide by $6 (for CBS) and everything one wants had better fit into 3 channels (at $6 each). $29/$6 = just under 5 channels. The business math just slams into the dream of al-a-carte.