A recent article on the Wall Street Journal today talked about how content providers of tv shows and movies, such as Comcast, Disney, Time warner, Viacom, CBS, etc, are increasingly losing money from ad revenue because a lot of their shows are being played on Netflix. Netflix pays these content providers money for the license to use their shows and movies on its site.
The content providers are stuck in a sort of catch-22, get easy money from Netflix while losing money from their tv ads. An easy way around this is to just stream! HBO recently started doing that, instead of giving license rights to their shows on Netflix, and knowing that they’re starting to lose ad revenue from millennials opting out of cable tv bundles, they started streaming.
Results look good so far for HBO where for a few dollars a month, millennials can just pay HBO for unlimited access to their content, bypassing having to sign up for an expensive cable bundle that has channels they don’t even need. It would seem like the world is moving that way, with DirectTV’s Sling. It’s a skinny bundle with just 10 channels or so, the most watched ones on tv, and it only costs roughly $20 a month, way cheaper than the current $80+ a month for channels you don’t even watch.
If the other content providers follow suit, imagine streaming from Comcast created contents like the Minion movies or Jurassic World, or it’s tv shows like 30 Rock, etc, for a few dollars a month, skipping even a skinny bundle.
Imagine streaming Disney content, its unlimited movies and tv shows, anywhere you are, bypassing the need for a tv channel or cable bundle, for a few dollars a month. This coupled with netflix, and you’re golden!
It would seem like the world is moving this way, the content providers need to adapt or die trying.
Jack the Dreamer, over and out