Saturday, October 18, 2014

The “a la carte” TV model... Not If but When!



The pace of industry consolidation as well as the businesses general move towards IP distribution models were never more evident than they were this past week.  On the heels of HBO's announcement of a plan to offer a Web-based service that doesn’t require a cable or satellite TV subscription, CBS announced that it will launch an All Access video-on-demand service that comes with a $5.99-per-month subscriber fee and has current and past seasons available for viewing. Local CBS television station streams will also be available through the subscription in 14 markets.  "It seems pretty apparent that every media company in America is thinking about direct-to-consumer, mobile, digital" said Les Moonves after the announcement.  ReCode also reported that CBS is considering an HBO-like service for its premium network Showtime. “We are always looking at ways of expanding our audience and it is certainly something that we have been examining for some time” said Moonves.

What HBO and CBS have done suggests the future of TV will be messier and more confusing in the near-term but ultimately consumers will have more choice of what they watch and how much they pay for it. No doubt this weeks developments suggests an avalanche of television networks and studios moving quickly to announce online apps and services. Sony, Dish and ABC all have been developing streaming strategies. And in the way that chattering about changing technology helps propel that change, the HBO and CBS announcements, separated by one day, creates a new momentum. Things are going to change even faster now. It’s a sign that the content business is suddenly racing into the broadband space.  MORE: ReCode.net 10/16/14 - Now CBS Is Selling Web Subscriptions to Its Shows, Too 

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