Bundles: TV is Merely Changing the Transmission Media Not The Business Model


TV Will Never Be Free
TV Will Never Be Free

Telco managed TV services (i.e. IPTV) had a great deal of issues obtaining content and it struggled terribly.  Some thought it would be built on UGC (User Generated Content).  However #YouTube stole that crown.  Many Telcos bundled it with the Broadband offer and then ticked you off as a TV Subscriber; whether you watched it or not.  Unfortunately it offered a lesser experience and needed linear TV to make it palatable to the average consumer.  In the main, people just want to be fed TV programmes and not have to be their own ‘channel-line-up’ producer each time they sit in front of the box.  We are inherently lazy and Millenials are no different – If anything their attention span kills the theory of sitting down and selecting a nights viewing by App scanning; especially after a hard days work on a screen.

This New Yorker (below) story about bundles growing on Internet or Web TV is fascinating as it looks at the TV Subscription angle.  However I felt that the story should have dug much deeper.  The author should have looked at the garnered revenue from subscriptions and investigated where that money relates to content:  i.e. Explore the way content is funded because this is also an important factor in the business model of TV and the bundle, be it over-the-air, over cable or over the Internet.  Here is an article that @TimWu could reference: http://abovethecrowd.com/2010/04/28/affiliate-fees-make-the-world-go-round/ 

Here is the full New Yorker Article:
http://www.newyorker.com/business/currency/the-dreaded-bundle-comes-to-internet-tv

Extract:
“But those who predicted that the Internet would kill the bundle may have spoken too soon. Internet TV, in fact, is now growing its own bundle—the so-called “neo-bundle.” This year, Dish television and Sony have begun selling a version of Internet television that centers on a bundle, albeit one that is smaller and cheaper that the original offered by cable companies. Dish’s Sling is the most exciting and enticing: it offers ESPN and twenty other channels for twenty dollars a month. (You add an extra fifteen dollars if you want HBO). Sony’s Vue has fifty or so channels, for fifty dollars a month, but no ESPN or HBO. Apple, meanwhile, is likely to launch its own version in the fall.

In short, instead of the Internet killing the bundle, the bundle is coming to the Internet; it would not be surprising if, in the next year or two, half a dozen more neo-bundlers join the game. This may come as a surprise to those who expected the television of the future to resemble, say, a smartphone screen, where every channel would be roughly like an app that you subscribe to à la carte. But overestimating change in the television industry is a rookie mistake.”

P.S. By the way, RabbitTV already bundles ‘free-content’ for you for a small fee.  Which gives kudos to my theory that we are all lazy when it comes to TV viewing.  “I’ll pay 10 bucks to someone to do it for me instead so I can just watch it instead of wasting all that time searching & selecting.”

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