By Nikki D Longo
Does the United States cable television industry need Netflix in order to stay competitive? Or is it the other way around? In the wake of a major announcement by streaming video king Netflix with regard to its plans to reach more customers via cable TV set-top boxes, consumers and industry analysts are wondering how the dynamics of programming and content delivery are transforming the future of video entertainment.
The current environment surrounding cable TV providers and streaming video services delineates several ongoing battles that are shaping the way U.S. consumers will eventually get their programming. First we have the cord-cutters, those Internet-savvy folk who have seen their cable bills sharply increase over the last few years. In many cases, cord-cutters are very selective about TV content; they do not care much about the rich diversity of programming that cable TV providers often rely on as a significant marketing point.
For cord-cutters, video streaming services such as Amazon Prime Video, Hulu and Netflix are their main motivation to cut the cord. They are also deeply interested in what some premium cable channels such as HBO are doing for their online audiences, and they are more than happy to fork over their hard-earned dollars to these digital outfits. HBO even considers it a compliment if you steal borrow someone else’s HBOGO account password to watch their shows. Many cord-cutters, however, are not happy about having to pay their local cable companies for broadband Internet service.
The second major battle in the streaming versus cable war focuses on quality content. In this regard, Netflix has already convinced a few European cable TV providers to allow them to reach customers via their set-top boxes. This may not please cord-cutters, but it does not mean that Netflix is giving up on them. This actually gives the company an opportunity to see how their customers feel about TV and Internet programming. This is not so much a battle as it is an effort by online video streaming services to find more platforms for delivering premium content.
The third battle is mostly centered around technology, and there are no clear leaders in this regard. Netflix is ready to do business with all cable companies, and so far Charter, Cox and Time Warner have expressed interest in this regard. Comcast has not quite warmed up to the idea; the company feels that its customers can already reach their streaming video fix via the ultra-fast broadband it offers.
The problem is that American cable companies are mostly interested in showcasing Netflix as a video-on-demand (VOD) offering. Only Google Fiber in Kansas City has truly integrated Netflix to its technological platform, but then again Google Fiber is an IPTV provider and not a traditional cable company.
Hulu was once courted by DirecTV, and CEO Mike White recently admitted that the company should have focused more on that possible acquisition. This does not mean that DirecTV will not consider future options, but it is important to remember that a successful integration of Hulu or Netflix will require more than just a VOD platform. Netflix is asking potential cable partners to integrate its Open Connect content delivery system to set-top boxes, which would entail a considerable investment.
In the end, both streaming services and cable providers must not lose focus on their customers. The recent “Take My Money, HBO” campaign is a sign that consumers are ready to do more than just cut the cord.
Nikki is an east coast girl at heart with what some might call an obsession with technology and gadgets. She may in fact be one of the only people who kept their TurboGrafx16. When she’s not writing, you can find her at the dog park with her pups or in the kitchen making something mouth-wateringly delicious.
Image Source: http://www.allmyfaves.com/blog/wp-content/uploads/2012/07/how-to-watch-tv-online-best-free-tv-streaming-sites-list-2012.png
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This entry was posted on November 14, 2013 at 7:42 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Guest Post: What Cable Has Learned From Streaming Services
By Nikki D Longo
Does the United States cable television industry need Netflix in order to stay competitive? Or is it the other way around? In the wake of a major announcement by streaming video king Netflix with regard to its plans to reach more customers via cable TV set-top boxes, consumers and industry analysts are wondering how the dynamics of programming and content delivery are transforming the future of video entertainment.
The current environment surrounding cable TV providers and streaming video services delineates several ongoing battles that are shaping the way U.S. consumers will eventually get their programming. First we have the cord-cutters, those Internet-savvy folk who have seen their cable bills sharply increase over the last few years. In many cases, cord-cutters are very selective about TV content; they do not care much about the rich diversity of programming that cable TV providers often rely on as a significant marketing point.
For cord-cutters, video streaming services such as Amazon Prime Video, Hulu and Netflix are their main motivation to cut the cord. They are also deeply interested in what some premium cable channels such as HBO are doing for their online audiences, and they are more than happy to fork over their hard-earned dollars to these digital outfits. HBO even considers it a compliment if you steal borrow someone else’s HBOGO account password to watch their shows. Many cord-cutters, however, are not happy about having to pay their local cable companies for broadband Internet service.
The second major battle in the streaming versus cable war focuses on quality content. In this regard, Netflix has already convinced a few European cable TV providers to allow them to reach customers via their set-top boxes. This may not please cord-cutters, but it does not mean that Netflix is giving up on them. This actually gives the company an opportunity to see how their customers feel about TV and Internet programming. This is not so much a battle as it is an effort by online video streaming services to find more platforms for delivering premium content.
The third battle is mostly centered around technology, and there are no clear leaders in this regard. Netflix is ready to do business with all cable companies, and so far Charter, Cox and Time Warner have expressed interest in this regard. Comcast has not quite warmed up to the idea; the company feels that its customers can already reach their streaming video fix via the ultra-fast broadband it offers.
The problem is that American cable companies are mostly interested in showcasing Netflix as a video-on-demand (VOD) offering. Only Google Fiber in Kansas City has truly integrated Netflix to its technological platform, but then again Google Fiber is an IPTV provider and not a traditional cable company.
Hulu was once courted by DirecTV, and CEO Mike White recently admitted that the company should have focused more on that possible acquisition. This does not mean that DirecTV will not consider future options, but it is important to remember that a successful integration of Hulu or Netflix will require more than just a VOD platform. Netflix is asking potential cable partners to integrate its Open Connect content delivery system to set-top boxes, which would entail a considerable investment.
In the end, both streaming services and cable providers must not lose focus on their customers. The recent “Take My Money, HBO” campaign is a sign that consumers are ready to do more than just cut the cord.
Nikki is an east coast girl at heart with what some might call an obsession with technology and gadgets. She may in fact be one of the only people who kept their TurboGrafx16. When she’s not writing, you can find her at the dog park with her pups or in the kitchen making something mouth-wateringly delicious.
Image Source: http://www.allmyfaves.com/blog/wp-content/uploads/2012/07/how-to-watch-tv-online-best-free-tv-streaming-sites-list-2012.png
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This entry was posted on November 14, 2013 at 7:42 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.