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Articles tagged with: MVPDs

12
March
2012

Netflix Looking for Cable Alliances

I have written in this space that in a best-case scenario, OTT video threatens and has the potential to radically disrupt the broadcast media model used by traditional MVPDs. Before this happens, MVPDs will try to absorb the disruptive technology so that it conforms to the existing business model. It is this context that I see the pressure on MVPDs to move toward a la carte programming tiers, and also a recent new item concerning the effort of one prominent online video distributor, Netflix, to form alliances with cable operators. Under this model, Netflix would become another premium movie channel, like HBO. Netflix’ move is motivated from the cable side by cable’s “TV Everywhere” initiatives, such as Comcast’s Streampix and Verizon’s partnership with Redbox to compete with Netflix.

“If Netflix could transition its subscriber base to cable, and attract new subscribers to a premium service, that could mean more revenue for cable operators including Comcast to woo cord-cutters back to the fold, and forge a new path to long-term survival for Netflix. It could be a win-win for strange bedfellows, who may find themselves snuggled up, streaming (and dreaming) of new revenue opportunities together.”

Written by: Carl Kandutsch

23
February
2012

Rising Retransmission Consent Fees Are Putting Pressure on MSOs for a la Carte Programming Choices

Online Video Distribution (OVD) presents a long-term threat to the traditional broadcast model of information distribution, and this is why traditional MVPDs (multichannel video programming distributors such as cable operators and satellite television providers) are attempting to control the future of OVD via various “TV Everywhere” initiatives. As we draw nearer to the tipping point at which cable TV gives way to OVD, we will see various bumps along the way, some of which will be good for consumers.

For example, a la carte programming tiers may be one indirect benefit of competitive pressure being applied to traditional MVPDs by online video distribution.

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Written by: Carl Kandutsch

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