When basketball superstar Kobe Bryant announced his retirement from the NBA on November 29, 2015, it occurred not on a major sports network but via social media and the Players’ Tribune, an athlete-centric digital publisher.
That same month, CBS — which like NBC, FOX, and ABC is trying to grow viewership outside of traditional pay-TV — announced plans to revive Star Trek, one of its best-known franchises, exclusively on CBS All Access, its new subscription video on-demand service.
If you are an executive in E&M, your formula for success is already shifting radically.
Instead, they must start repositioning themselves as pay-TV bundles resized into “skinnier” packages and other new combinations.
To consistently be in the “must have” category, networks have to offer a steady supply of original and unique acquired content to cut through the clutter and create meaningful fan bases, making their networks, brands, and shows “indispensable” to distributors as well as advertisers.
Traditional video distributors, such as cable, satellite, and telecommunications companies, must weigh three strategic options as they react to consumer desire for fewer channels, more personalization and choice, and lower monthly bills: (1) create more segmented, affordable, and smaller video bundles to maintain pay-TV subscription rates; (2) launch OTT services to target cord-nevers (those who have never connected to a pay-TV service); and (3) integrate “a la carte” OTT or packages of OTT services with broadband access. broadband and telecommunications company, said that fully one-third of its new Fi OS video subscribers had chosen the company’s “custom TV” skinny bundle. K., Sky’s Now TV claims that it is seeing incremental subscriber growth from its tailored OTT offering that targets consumers who would not seriously consider its premium pay-TV service. Amazon is pursuing yet another version of this reseller strategy with its recently launched Streaming Partners Program, where Prime members can add premium video services like Starz to their Prime Video accounts on an à la carte basis.
Numerous variations of these approaches are being adopted. Over time, we see much of this distributor activity inexorably leading toward a redesigned, more unified, and more segmented collection of easy-to-enjoy video for users.
And as they invest in more differentiated content, networks will have to exercise greater control of their rights related to streaming if they are to better monetize TVE, OTT, and expanding third-party distribution opportunities.
As the bundle gets reshaped, the networks with weaker brands, less differentiated content, and fewer fans will be the ones most exposed to potential distribution and advertising losses in this environment. cable operator, is offering stand-alone streaming services such as HBO NOW, Hulu, and others in combination with broadband Internet access as specific — typically younger — segments of users choose video streaming over pay-TV.
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Fox declared it will no longer track same-day TV ratings; rather, it will report on program viewership occurring after three and seven days, responding to the prevalence of on-demand viewing.
Mobile operators like AT&T and Sprint responded to users’ surging demand for streaming video by emphasizing their unlimited wireless data offerings in their marketing and subscriber acquisition efforts.
Around the world, more people are choosing to stream video through over-the-top (OTT) services, that is, services that deliver film and television content via the Internet, without the need for traditional cable or satellite TV subscriptions. Although most viewers currently add OTT to their pay-TV subscriptions, its disruptive potential is becoming more apparent. A year later, that number had fallen to 79 percent. In parallel, many E&M companies have been selling their content — their libraries of movies and television shows as well as new originals — to streaming services such as Netflix, Amazon, and Hulu.