Big business moves a sign of cord-cutting future
You don’t need to be an expert to see that the writing is on the wall for pay-TV. The moves made by big businesses show us a future where everyone’s cord-cutting and juggling between streaming services. Its last hope was live sports.
Regular sports viewers made up 60% of current pay-TV subscribers.MoffettNathanson – via Bloomberg
The increased prominence of streaming and live TV services included therein at fractional costs are rendering pay-TV contracts obsolete. In other words, this Bloomberg report suggests 40 percent of pay-TV customers are at risk of cord-cutting.
Plus, Wednesday’s official CBS-Viacom merger may even lead to another new streaming service. CBS is among the most iconic pay-TV brands, yet should see its own streamer, CBS All Access, expand on the strength of this merger.
Despite best attempts to hold on, big-business TV providers are flailing, and now their tight grip is sweaty from the fight. The sports we love are slipping free, and will in the not-so-distant future be fully integrated into the streaming service ecosystem.
- MLB digital rights split from broadcast
- Best sport games streaming this week
- ESPN+ NHL package should boost league
It’s more than live sports
If their problem was only the loss of live sports, pay-TV may prevent a cord-cutting future. But the bigger evolution has been how we consume content.
- Disney+ app download 1 million times a day
- Hulu Basic should be free not on sale
- New York professor predicts streaming war winners
Maybe in time there will be nostalgia for TV guides, watersheds, and series reminders, but it’s unlikely. Every facet of pay-TV is the opposite of what people now demand: convenience and immediacy.
Only a matter of time (moving money)
The certainty over pay-TV’s impending collapse is driving big and rapid change. Look at the stock market, the wild nature of content acquisitions, or the re-factoring of business priorities. It’s all evidence in the gutting and abandonment of pay-TV.
- Roku stock up 370% this year (CNBC)
- Shows moving in 2020, including wild acquisition prices
- Disney puts streaming service over its merchandise
It’s just that the powers that be can’t admit it, because it would be bad for their existing business interests. A status quo is needed. If cords were cut before big companies had their eggs in the right baskets, it would have left Netflix (and Amazon) in a position to become all-powerful. Even now they’re so far out in front.
- Netflix is spending six times more on content than Disney+
- A physical market for Netflix to dominate in
- Netflix flexing muscle with acquisitions
The king is dead, long live the king
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