Interesting look at how Time Warner has lost 140,000 residential video customers during the third quarter this year.
What the article doesn't tell you is that even though TW lost those 140,000 subscribers - profits are up in part because they increased the number of residential high speed Internet customers by 8%. People who cut the cord still need a good Internet connection to view Netflix, Hulu and the rest of the over the top content providers.
The real losers from TW losing 140,000 residential video customers are the content providers. That dip in TW subscribers should cost Disney (ABC, ESPN, etc.) well over $1 million a month just in Affiliate Rights fees never mind lost advertising revenue. If this becomes a trend then content companies may start rethinking a la carte pricing as a way to get back some of the cord cutters.
Showing posts with label ABC/Disney. Show all posts
Showing posts with label ABC/Disney. Show all posts
Tuesday, November 6, 2012
Saturday, August 25, 2012
Google Fiber's Missing Channels
I've seen a number of articles about Google Fiber in Kansas City commenting on the channels their TV package seems to be missing. What I have not seen is a good explanation of why those specific channels seem to be excluded from the line-up.
I think I can explain. The noticeable missing content seems to be from ABC/Disney (including the ESPN channels), Turner (TBS, TNT, CNN, etc) and HBO. What these three companies have in common is they traditionally do not allow their content to be transported via fiber. If Google wanted to add the channels by pulling them down via satellite then those channels would probably already be secured. But the name of the company is Google Fiber not Google Satellite.
In my opinion this has little to do with the cost of the content - consider that HBO is premium content that only the subscribers who want it would be paying for it. This has to do with business models - both Google's and the content providers. How subscribers access over the top portals like HBO Go or ESPN3 is probably one of the key sticking points. I'm also guessing that none of the three content providers are very excited about re-doing any existing most-favored agreements to satisfy Google.
It will be interesting to see how this is resolved.
I think I can explain. The noticeable missing content seems to be from ABC/Disney (including the ESPN channels), Turner (TBS, TNT, CNN, etc) and HBO. What these three companies have in common is they traditionally do not allow their content to be transported via fiber. If Google wanted to add the channels by pulling them down via satellite then those channels would probably already be secured. But the name of the company is Google Fiber not Google Satellite.
In my opinion this has little to do with the cost of the content - consider that HBO is premium content that only the subscribers who want it would be paying for it. This has to do with business models - both Google's and the content providers. How subscribers access over the top portals like HBO Go or ESPN3 is probably one of the key sticking points. I'm also guessing that none of the three content providers are very excited about re-doing any existing most-favored agreements to satisfy Google.
It will be interesting to see how this is resolved.
Subscribe to:
Posts (Atom)