When deciding to drop cable or satellite tv for pc TV, there are two potential paths a wire cutter can take.
The first is to switch the cable bundle with a streaming one, utilizing companies like YouTube TV, Hulu + Live TV, or Sling TV. The second is to cobble collectively numerous standalone companies similar to Netflix, Amazon Prime, and Hulu, maybe throwing in a TV antenna for good measure.
Each strategy has its execs and cons, and there’s room for them to overlap. But I’ve been predicting for some time that we’ll in the end see extra folks select the latter strategy. As the perfect content material turns into accessible exterior the bundle, the ever-increasing prices of cable channels will develop into an excessive amount of to justify.
This was the logical end result of Viacom and CBS merging (into ViacomCBS) final yr. A said objective of that merger was to extend bargaining energy towards TV distributors similar to YouTube TV, thereby facilitating larger bundles at larger costs. While YouTube TV has not but introduced any corresponding value hikes, you’d be silly to suppose none are coming.
Keep a watch on Hulu + Live TV, Sling TV, and Philo as nicely. Hulu solely carries CBS channels, whereas Sling and Philo solely carry Viacom ones. If YouTube TV’s new deal is any indication, these preparations gained’t final as ViacomCBS insists on packaging all its channels collectively.
Surely ViacomCBS realizes that larger bundles and better costs will solely end in even quicker declines for the TV bundle. But perhaps that’s the purpose: While squeezing what it could actually from pay TV, ViacomCBS plans to construct up its personal subscription streaming service to tackle the likes of Netflix. The firm quickly plans to rebrand its present CBS All Access service, including extra content material and elevating the worth accordingly. In a way, no matter income might be gleaned from pay TV subscribers will assist fund this new endeavor. It’s the identical technique espoused by different media giants, similar to Disney, Comcast’s NBCUniversal, and AT&T’s WarnerMedia.
All this was already in movement nicely earlier than the pandemic, however as with so many different developments—working from dwelling, video conferencing, dwelling deliveries—the transfer towards a la carte subscriptions is simply going to occur quicker now. You’ll see extra content material head straight to streaming companies (as Disney is doing with motion pictures like Hamilton and Frozen 2), and perhaps much more unbundled sports activities in consequence.
You’ll additionally in all probability see the standard, drained complaints about how we’d be higher off simply bundling all the pieces collectively once more. Looking on the escalating value of reside TV streaming companies, and the variety of folks now voting towards these service with their wallets, I discover it more durable than ever to agree.
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