More disruption to the business model of television. Check out this quote:
“Meanwhile, the paid TV industry has been reeling from the impact of subscribers defecting in favor of piecing together their own viewing options with streaming services and devices like Netflix, Hulu, Amazon Prime, Apple TV and Roku. Last year alone, an estimated 687,000 cable subscribers canceled their accounts, according to Craig Moffett and Michael Nathanson, the eponymous Wall Street veterans at MoffettNathanson research firm in Manhattan. All of 2013, they said in a report last year, amounted to the worst 12-month stretch in the paid television industry they had ever seen.”
http://www.nj.com/business/index.ssf/2014/04/comcast_launches_streaming_dvr_service_in_nj.html
This is a very interesting article. One criticism that my parents have regarding cable is that they cannot “pick and choose” which channels that they subscribe to. I have a subscription to cable, and probably watch two channels. In fact, I don’t have the one channel i need in order to watch the only show i have any interest in (game of thrones). I think one possible solution that cable companies can use to increase the number of subscribers (or decrease the amount of people canceling their subscriptions) is to allow individuals the opportunity to select an “a la carte option” I still think with this option, many individuals will chose the option of watching a particular show on a larger screen than a tablet or computer. Further, companies like netflix have become successful in part because they launched a popular TV series that is only available through that provider. If networks can continue to launch popular shows, the a la carte option should ensure that cable companies remain in business.
I, like many others, feel that the current “cable model” is broken. What’s interesting is the similarity between the state of the network cable model presently, and the state of the music industry during the Napster era. Back in the early 2000’s, frustrated consumers were upset about having to purchase 10 to 11 songs they didn’t want just to get the one song they did want. Napster (and other download services) allowed consumers to quickly and easily get their hands on media, and laid the foundation for what would become monumental shift of how music was bought and consumed. Although we now have services like Itunes and Spotify which legally allow us to consume only the music we want to hear, the major players in the music industry initially fought tooth and nail against the evolution of the industry. Perhaps had they recognized and adapted earlier to shifting consumer preferences, these players would have had more of an influence over the modern music industry.
The state of the TV/movie industry seems to be facing a similar identity crisis. It’s easier than ever for consumes to watch content that they want to watch while skipping the content they don’t care for; all without being tied to an expensive cable subscription. I am convinced that many consumers would be willing to continue paying for certain channels/networks via a subscription model, but only if they were able to pay for only the content they desire to see. Networks/channels still provide value to consumers, but the high prices and bundled options available today are simply not worth it to many. While Comcast seems to have at least identified an issue, I am not convinced they are doing enough to stop the max exodus from the current cable TV model. An online DVR service is a “cool” luxury to have, it’s simply not addressing the real problem. Consumers want more of a choice, and don’t like to pay for things that they don’t use. It will be interesting to see whether or not Comcast and the other major players in the industry adapt to these new preferences and help shape the future, or merely scramble and “catch up,” as we saw those in the music industry do.