This will probably precipitate other services allowing a web-only subscription, and will hopefully begin the price war with cable!
Between huge on demand collections and DVR use there's practically almost no "appointment viewing" with cable/satellite/etc. TV providers.
I don't think the issue is A La Carte vs. Subscription. Most people would be content with cable subscriptions if they offered more realistic tiers or options where the consumer could get the channels they want without paying for extraneous channels. Currently, everyone ends up paying into a big bucket for content that they may not care about or watch.
Imagine a service where you pay $10/month for connection and local channels. $20/month gets you any 15 channels of your choosing. HBO is then a la carte for $5.
$35 per month for just the content I want to watch without being forced into paying $15/month to get one channel that is included in a "pack" with 50 others that I don't want. Done deal.
Of course, you could have more tiers of 30, 50, 75, 100 channels to sell at various price points. The ability to choose what channels/shows/content you actually want is the key.
in about 5 years:
"Man, I have to subscribe to HBO, Showtime, FX, AMC, Netflix, Comedy Central, etc...I wish I can just subscribe to all content at one low, discounted monthly rate."
I know it'd be cheaper for me (and I have Direct TV).
MLB $110 ($130 for Premium)
NBA $149-5 teams ($199 for all)
NFL $239 TV Only (329 for Max) - Only with Direct TV or in very specialized circumstances.
Direct TV package costs (rough estimates with tax, possible DVR fee etc, leaving out the one that includes the premium channels obviously YMMV) $70 - $100.
3 full sport packages $498-$659.
DirectTV packages $840-$1200.
Even at the insane full 3 sport packages (Sunday Ticket Max? That much to stream to a device? Really?), you'd have to have pretty much the cheapest plan not to be fairly equal or better off. And if you drop one of those sports, you're notably ahead.
Obviously there's plenty of caveats with the numbers above (you want to watch a local game that's only on cable, tough, we have no idea what a regular channel would charge with an OTT model, you can try to badger your provider yearly for a deal etc), but I know for the 6-8 channels I watch, and the two sports I pay for full access, I'd be saving a notable amount of money even if each of those non-premium channels charged 5x what they charge the cable/sat company to carry them right now, and I doubt that would actually end up being the case.
We want a monthly subscription to get all content at one price.
But in those cases you don't get anything that's airing now. Sure, might be fine for some, but not so much for others.Sure but the DVR is still only recording what's on the cable schedule. With AppleTV / Netflix / etc. you can watch an entire season (or seasons) on demand at any time IN ORDER from beginning to end without taking up any disk space because it's all streamed. Netflix has tons of older shows with every single episode of every season (or all but the latest season for current shows)... all at your finger tips. I had a DVR for over a decade. It was great, but I cut the cord 2 years ago and streaming is far better. The only problem with streaming right now is fragmentation... having to use multiple apps to access content. I imagine the "killer app" of the rumoured Apple Television (if it ever happens) would be to somehow get deals in place that allow them to offer EVERYTHING streamed from ONE central location (rather than multiple apps and services). In that sense, cable is better. But overall I would never go back. Plus I'm saving $1600 / year. Cable cost me a BOATLOAD of money! Way too expensive.
Imagine a service where you pay $10/month for connection and local channels. $20/month gets you any 15 channels of your choosing.
Apple could sell the iPhone for $449 instead of $649 too. I'm guessing HBO wants to make as much money as possible, just like Apple does.
firstrow/thebay/rabbit ears for local news
I don't think the issue is A La Carte vs. Subscription. Most people would be content with cable subscriptions if they offered more realistic tiers or options where the consumer could get the channels they want without paying for extraneous channels. Currently, everyone ends up paying into a big bucket for content that they may not care about or watch.
Imagine a service where you pay $10/month for connection and local channels. $20/month gets you any 15 channels of your choosing. HBO is then a la carte for $5.
$35 per month for just the content I want to watch without being forced into paying $15/month to get one channel that is included in a "pack" with 50 others that I don't want. Done deal.
Of course, you could have more tiers of 30, 50, 75, 100 channels to sell at various price points. The ability to choose what channels/shows/content you actually want is the key.
Only problem with your analogy is that the buffet is really: pay $10 and you can get dessert and bread. But if you want meat and potatoes with that dessert and bread, that will be $20. Now if you want a premium dessert, that will be $5 more or $25 total.![]()
I really like the idea from another poster of paying a basic fee service that includes local channels. Then maybe an additional fee something like 10 additional channels of my choice. Not saying it's feasible from a business standpoint, but something like that would make me a happier customer.
in about 5 years:
"Man, I have to subscribe to HBO, Showtime, FX, AMC, Netflix, Comedy Central, etc...I wish I can just subscribe to all content at one low, discounted monthly rate."
So you think that you should support the music artists with more than a 'couple of cents' (and I happen to agree with you). But shouldn't you also want to support the artists that make the content of the channels you want with more than a couple of cents?
The way the current model works is that people watch different channels. You may watch CBS and TNT the most but I prefer tpThe History Channel and Discovery. When we both subscribe to a package that contains all four channels all four receive proceeds from both of us, thus keeping their programming going. If they are split up to an ala carte menu then in order to continue making those wonderful programs we like they must increase their revenue. So each of us will actually need to pay more just to stay even.
[...]
Ala carte sounds really nice but it will be just as expensive as the bundles, or, most likely more expensive. Either that or the programming will go down and all we will get is stupid reality cr@p.
You assume we all want 100+ channels. I'm pretty happy with the 4 broadcast networks ever since I cut the cord. (no, I don't count the CW) I wouldn't mind adding a few other shows, but I'm not going after 10 different cable groups at $10 each.I don't think people who want ala carte pricing really understand how the industry works. Yes, I really dislike seeing 10 shopping channels and 15 religious channels that I will never watch but some people do watch them and the revenue those channels provide helps fund the channels and programs I do like.
Ala carte sounds really nice but it will be just as expensive as the bundles, or, most likely more expensive. Either that or the programming will go down and all we will get is stupid reality cr@p.
in about 5 years:
"Man, I have to subscribe to HBO, Showtime, FX, AMC, Netflix, Comedy Central, etc...I wish I can just subscribe to all content at one low, discounted monthly rate."
it's not fair to compare music and tv. and it's also not a straight comparison. none of the stuff you get on cable, you own. whereas the stuff you buy of iTunes you do own to some extent even if not outright. it's two very different business models. for it to be a fair comparison you would need to offer everything on cable for one low low monthly fee like spotify, which is not gonna happen. music sales model was pretty diluted by piracy but they make money elsewhere.
The music industry is very, very different than the film & tv industry.
First of all, there are three major players in the music business. If you get the deal done with those three, you're set. The film & tv industry intentionally kept the arms split apart. You need to negotiate the same deal with many, many more players. The deals are far more complicated, by design, so that nobody finds themselves out of a job.
The film industry just watched the music industry completely screw up their business model. They are not about to make the same mistake.
Re: HBO - each of their contracts with each studio will need to be reevaluated to determine if Over the Top services like this are allowed. Offering a service like HBO Go to cable subscribers is very different than offering a service like Netflix to everyone. Fortunatly, it generally will be allowed because the deals were negotiated before Netflix existed. However, you best believe all of those deals will be a lot more expensive when it comes up for renewal. This model does not scale. It will either be very expensive, or very limited.
Hell will have frozen over when I can watch the NFL without a Comcast
subscription.
When I can watch any sports the way that I currently can with MLB.tv we will
have reached Nerdvana.
It's definitely getting cooler in hell but we're not there yet...
I don't think the issue is A La Carte vs. Subscription. Most people would be content with cable subscriptions if they offered more realistic tiers or options where the consumer could get the channels they want without paying for extraneous channels. Currently, everyone ends up paying into a big bucket for content that they may not care about or watch.
Imagine a service where you pay $10/month for connection and local channels. $20/month gets you any 15 channels of your choosing. HBO is then a la carte for $5.
$35 per month for just the content I want to watch without being forced into paying $15/month to get one channel that is included in a "pack" with 50 others that I don't want. Done deal.
Of course, you could have more tiers of 30, 50, 75, 100 channels to sell at various price points. The ability to choose what channels/shows/content you actually want is the key.