Editing Cut Off: Are Cable TV and Satellite Television Companies Obsolete?
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A few months ago HBO and CBS did something that roiled the pay TV industry: they announced plans to offer their complete programming line-up live and streaming over the internet. Suddenly the digital world erupted in cries of joy: At first blush it seemed as if both satellite and cable TV companies were staring at the face of oblivion. After all, if more pay TV networks copied them, what could these firms offer their subscribers that they couldn't get online? The end of pay TV as we know it seemed to be in the cards. Not so fast, cord-cutters. The issue? Price. HBO Go, the new online version of HBO, was priced at $15/mo. which is approximately $5 more per mo. than what most of cable and satellite TV companies charge today for the network. It seems that HBO was apprehensive of severing their own cord with these firms by underpricing them and going right to the consumer. And the numbers corroborate their fear: there are about 100 million pay TV customers in America today, versus approximately 10 million online TV watchers -- those who view their programming on Netflix, Hulu or direct from the networks' own websites. A ten-fold advantage in numbers is powerful incentive not to rile the cable TV and satellite companies who put food on HBO's plate through carriage fees. CBS marketed their online programming much more realistically -- just $6 mo. for the so-called CBS All Access. But will pay TV customers really want to do without their NBC, ABC, Fox, etc. etc. to watch just the Tiffany Network online? Hold on, you point out: won't these networks eventually capitulate and start serving up their own streaming content? Maybe so, and maybe even as low as $6 per mo But then the cash starts to add up: $6 for CBS, $6 for ABC, $6 for NBC -- you get the idea. It wouldn't be long before the total price of "cutting the cord" with the satellite TV and cable companies becomes higher than their monthly charges -- estimated at an average $64.41 by the FCC -- thus overwhelming any savings. Actually, it's debatable whether HBO Go will actually go anywhere. At least one questionaire showed only 6% of internet-only TV watchers would pay $15/mo. to get HBO online. Will those eyeballs be sufficient to make the entire enterprise worthwhile, given that HBO will almost certainly have to ante up more money to the internet service providers for greater bandwidth to facilitate smooth streaming? Although many pundits feel pay tv can not exist in its current form in a internet era, single networks offering streaming services on line will not be the existential threat to cable and satellite that many had hoped or feared. Interestingly enough, only if these networks banded together and offered themselves in a bundle will consumers get the same bang-for-the-buck that they do with their current cable and satellite TV subscription packages. For more details go to this great website [http://tim12morgan.sosblogs.com/The-first-blog-b1/Cut-Off-Are-Cable-TV-and-Satellite-Television-Companies-Doomed-b1-p2.htm dish network] You should also visit this site: [ranklink]
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