Akamai leaderboard - 2-27-17

Analysis for 'Skinny Bundles'

  • Research: 22% of U.S. Broadband Homes Don’t Have Pay-TV, Double Vs. 2011

    As of year-end 2016, 22% of the 100 million U.S. homes that subscribe to broadband did not also subscribe to a pay-TV service. That’s up from 9% of the 85 million U.S. homes that subscribed to broadband but did not also subscribe to a pay-TV service in 2011. Over the course of 2016 alone, the rate of broadband homes subscribing to pay-TV declined from 82% to 78%, resulting in 22 million broadband homes without pay-TV at the end of last year, compared with 8 million in 2011.

    The data comes from a new report from The Diffusion Group, “Life Without Legacy Pay-TV: A Profile of U.S. Cord Cutters and Cord Nevers” that has just been published.

    continue reading on VideoNuze iQ

     
  • Akamai full banner - 2-27-17
  • Is There Any Rhyme or Reason for Which TV Networks are Included in Skinny Bundles?

    Here’s a Monday morning brain teaser to consider: is there any rhyme or reason for which TV networks are being included in skinny bundles like Sling TV, DirecTV Now, YouTube TV and soon Hulu? If there is, it’s hard to discern what it is. In fact, the composition of skinny bundles is getting more puzzling all the time.

    For instance, last Friday, Hulu announced that it had reached a distribution deal with A+E Networks for its forthcoming skinny bundle. The deal followed previously announced ones with Hulu’s corporate parents Fox, Disney and Turner, plus CBS. But just a couple weeks ago, when YouTube TV was announced, it didn’t include A+E Networks (nor Turner, Viacom, Discovery, AMC or Scripps), though it did include CBS, Disney, Fox and NBCU.

    continue reading

     
  • NABShow OVC - full banner - 2-8-17
  • VideoNuze Podcast #360: YouTube TV’s Pros and Cons

    I’m pleased to present the 360th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    Earlier this week, YouTube took the wraps off its skinny bundle, YouTube TV. In today’s podcast, Colin and I explore the pros and cons of YouTube TV and also revisit our debate over skinny bundles’ value proposition. We’re both somewhat skeptical about YouTube TV, given the sheer number of popular cable TV networks missing from its lineup. But with YouTube’s massive user base and promotional opportunity, we both believe YouTube TV will attract an audience.

    Listen in to learn more!
     
    Click here to listen to the podcast (23 minutes, 51 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • IBM Cloud Video - full banner - 12-8-16
  • Handicapping YouTube TV’s Odds of Success

    Another day, another skinny bundle launch. Yesterday, YouTube took the wraps off its long-rumored skinny bundle, dubbed YouTube TV, which will debut in unspecified select markets in the coming months. YouTube TV has all the usual skinny bundle characteristics - low price ($35/month), many broadcast and cable TV networks included, but many missing as well (e.g. Viacom, Discovery, AMC, Turner, Scripps, A+E, etc.), and some updated web-like features (unlimited cloud DVR, recommendations powered by Google, UI that integrates YouTube content, etc.).

    Fundamentally, YouTube TV’s value proposition to its target market of millennial viewers is the same as other skinny bundles: for a lower monthly price than a typical pay-TV multichannel bundle, you’ll still get access to a lot of great TV, available on all devices.

    continue reading

     
  • NABShow OVC - full banner - 2-8-17
  • VideoNuze Podcast #354: Interview with Sling TV’s Chief Product Officer Ben Weinberger

    I’m pleased to present the 354th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    This week Colin and I interview Sling TV’s chief product officer Ben Weinberger. We’ve known Ben for many years from when he was CEO and founder of Digitalsmiths, which was acquired by TiVo.

    As loyal listeners know, we’ve discussed “skinny bundles” like Sling TV many times on the podcast and so the interview was a great opportunity to get Ben’s views on the category in general and how Sling TV specifically is doing. We discussed many different topics, including the role of broadcast TV networks and antennas, sports and regional sports networks, how subscribers use the service on different devices, how Sling TV fits with SVOD services and much more.

    Importantly, Ben talks a lot about Sling TV’s value propositions including offering more choices and flexible packages. We wrap up with Ben sharing his views on where the market is heading over the next few years.

    Listen in to learn more!
     
    Click here to listen to the podcast (33 minutes, 15 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • IBM Cloud Video - full banner - 12-8-16
  • VideoNuze Podcast #349: DirecTV Now Has Potential and Limitations

    I'm pleased to present the 349th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    DirecTV Now, the latest skinny bundle to launch, was unveiled on Monday. In this week’s podcast, Colin and I provide our initial assessment. Given AT&T CEO Randall Stephenson’s bold reveal a few weeks ago that it would include over a 100 channels for just $35/month, there’s been a lot of anticipation that DirecTV Now could be a genuine industry disruptor.

    Well, it turns out the 100+ channels are actually available at $60/month (the “Go Big” tier), though temporarily on special for $35/month. However, the base tier (“Live a Little”), which includes 60+ channels, turns out to be pretty decent itself, especially with a very aggressive $5/month HBO offer. What’s gained by moving up to Go Big for an extra $25 is actually not that impressive.

    Still, as we discuss, with no DVR, limited VOD, scarce broadcast TV (and no CBS at all) and a 2-stream cap, DirecTV Now feels like a niche product. At least for now, that means it will have little impact on incumbent pay-TV operators, tamping down concerns it could roil the industry. Skinny bundles still have lots of challenges, though 2017 is going to be an active year, especially with Hulu and YouTube coming, so it will be worth keeping a close eye on whole category.

    Listen in to learn more!
     
    Click here to listen to the podcast (23 minutes, 43 seconds)


    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • Akamai full banner - 2-27-17
  • Cord-Cutting Remained Modest in Q3, But Potentially Turbulent 2017 Looms

    According to industry data compiled by Leichtman Research Group, cord-cutting remained relatively modest in Q3 ’16, with the top 11 pay-TV operators, which account for approximately 95% of the market, losing 255K subscribers vs. 210K lost in Q3 ’15. As has been the trend in recent quarters, cable operators performed better than satellite and telco operators, which are disprorportionately bearing the brunt of the overall market’s slow, but ongoing, contraction.

    continue reading

     
  • NABShow OVC - full banner - 2-8-17
  • Hulu Gets Fox and Disney Networks, But Live Broadcasts are a Challenge as World Series Shows

    Hulu announced yesterday that it has struck deals with 21st Century Fox and Disney for access to over 35 different TV networks for Hulu’s skinny bundle, slated to launch in early 2017. The agreements are no surprise given Fox and Disney are Hulu’s two primary investors, along with Comcast (which has a back seat role per restrictions related to its NBCU acquisition) and Time Warner, which recently took a 10% stake in Hulu.

    But the devil is in the details, because when it comes to Hulu’s ability to include live broadcast feeds in its skinny bundle, the Fox and Disney deals only get it a small part of the way. Fox owns 17 stations around the country and Disney owns just 8. Since there are 210 DMAs in the U.S. that means Hulu needs to strike agreements with lots of different local station owners to enable a standardized nationwide skinny bundle offer including local broadcast feeds.

    continue reading

     
  • IBM Cloud Video - full banner - 12-8-16
  • VideoNuze Podcast #344: A Busy Week in the Video Industry

    I'm pleased to present the 344th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    This week was busier than usual in the video industry and on today’s podcast, Colin and I discuss a number of news items that hit our radar. First we talk about the new Google-CBS deal for the upcoming Unplugged skinny bundle. Next up is VUDU’s Movies on Us, new free, ad-supported VOD service which we both think has potential. We then dig into Facebook’s new feature for advance scheduling and promoting live broadcasts. Finally we review LeEco’s new content and TVs (Colin attended the company’s big launch event this week.)

    Clearly there was a lot happening this week as major players in the video industry continue jockeying for position. One news item that broke after we recorded is the rumor about AT&T acquiring Time Warner. That type of deal would be straight out of the Comcast-NBCU playbook and could trigger even more distribution-content tie-ups.

    Listen in to learn more!
     
    Click here to listen to the podcast (26 minutes, 17 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • NABShow OVC - full banner - 2-8-17
  • Google, VUDU and LeEco: 3 More Potential Video Disruptions Coming?

    Each week brings more innovation, product announcements and new business models to the ever-changing video industry. This week was certainly no different, and news from 3 companies - Google (a deal with CBS for its Unplugged skinny bundle), VUDU (a new ad-supported on-demand movie offering) and LeEco (a range of new products from the Chinese giant, including TVs and content) - caught my attention. Each has the potential to cause further industry disruption, or amount to nothing. Below I share thoughts on each.

    continue reading

     
  • Akamai full banner - 2-27-17
  • VideoNuze Podcast #339: Turner Moves Toward Direct-to-Consumer; Tough Realities for Skinny Bundles

    I'm pleased to present the 339th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    First up this week we discuss Time Warner’s investment earlier this week in You.i TV, a video app development platform. Colin notes that the acquisition furthers Turner’s strategy of owning its own technology and going direct-to-consumer. From my standpoint, You.i TV is critical in streamlining Turner’s app development across multiple connected devices, where viewing is migrating.

    We then transition to talking about skinny bundle research from Altman Vilandrie & Co., which I wrote about yesterday. The data confirmed my skepticism about how difficult it will be for skinny bundle providers to offer sufficiently comprehensive channel lineups while still enticing subscribers with cost savings. We dig into some of the most salient data points.

    (apologies, the recording quality was a little sub-par this week)

    Listen now to learn more!

    Click here to listen to the podcast (22 minutes, 16 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • Akamai full banner - 2-27-17
  • New Research Highlights Major Challenges Skinny Bundles Face

    New research from consulting firm Altman Vilandrie & Company highlights the major challenges that current and pending “skinny bundles” face. Skinny bundles - which are scaled down, customized and less expensive groups of TV networks - have become a hot industry topic, and are perceived as valuable in pulling cord-cutters and cord-nevers back into the pay-TV ecosystem.

    But AV&Co.’s 7th annual consumer video survey, which is the most extensive research that I’ve seen yet into the prospects for skinny bundles, paints a picture of how narrow the opportunity may in fact be. VideoNuze readers know that I’ve been very skeptical of skinny bundles, whether from Sling TV, PlayStation Vue or soon Hulu and DirecTV Now. The AV&Co. research largely confirms my concerns (see here and here).

    continue reading on VideoNuze iQ

     
  • Akamai full banner - 2-27-17
  • VideoNuze Podcast #334: Debating Whether Hulu’s Skinny Bundle Makes Sense (Part 2)

    I'm pleased to present the 334th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    In this week’s podcast, Colin and continue the debate we began back in early May (see here) about whether Hulu’s “skinny bundle” makes sense. We took up the debate again because earlier this week Time Warner announced that it was acquiring a 10% interest in Hulu and that its ad-supported cable networks would be included in the skinny bundle.

    As I wrote on Wednesday, the deal seems to muddy Hulu’s skinny bundle proposition further. With all of the TW networks included, Hulu’s cost of programming also rises, in turn driving up the skinny bundle’s retail price. If the bundle ends up starting at $40, $50 or $60 per month, it won’t be able to create meaningful cost savings vs. pay-TV. Even with TW’s networks, there’s still the “Swiss cheese” risk inherent to all skinny bundles - not offering enough breadth to satisfy a family. If all that isn’t enough, Hulu will be competing with its best customers, a very risky approach.

    Colin disagrees and thinks this is a big opportunity for networks to take more control of their destiny. Colin argues that given all the uncertainty of the video market, being able to experiment and get actionable insights from viewer data is valuable. In short, he only sees upside opportunity.

    It’s a great debate and we’re both very eager to see how the Hulu skinny bundle will actually look when it’s introduced.

    Listen now to learn more!

    Click here to listen to the podcast (24 minutes, 2 seconds)



    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today!

     
  • IBM Cloud Video - full banner - 12-8-16
  • With Time Warner’s Hulu Investment, Cable Networks Take Another Step Toward Disrupting Themselves

    After months of rumors, Time Warner officially announced this morning that it was taking a 10% ownership interest in Hulu for approximately $580 million. Time Warner also announced that its ad-supported cable networks (TNT, TBS, CNN, etc.) will become part of Hulu’s “skinny bundle” set for launch early next year.

    With Time Warner joining Disney and Fox in owning and guiding Hulu (along with Comcast, which is a silent partner), these 3 big cable and broadcast TV networks owners are taking the extraordinary risk of disrupting pay-TV, the very business model that has worked so well for them for decades.

    continue reading

     
  • Akamai full banner - 2-27-17
  • VideoNuze Podcast #321: Debating Whether Hulu’s Skinny Bundle Makes Sense

    I'm pleased to present the 321st edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    Hulu was in the news in a big way this week, confirming a WSJ report that it plans to launch a skinny bundle next year. As I wrote on Monday, the move raises numerous questions, which Colin and I debate on this week’s podcast.

    Absent more information, I’m still somewhat skeptical. It feels very risky to me for Disney and Fox to convert Hulu into a pay-TV competitor. It’s also not clear that the economics of a direct subscriber relationship are superior to the steady flow of monthly retransmission consent and affiliate fees. Finally, I wonder about how big the addressable market is and how appealing the Hulu skinny bundle actually will be, particularly from an all-in cost perspective.

    Colin, on the other hand, is much more optimistic. He doesn’t believe there’s much risk, thinks the economics are better going direct and believes the service can be very appealing. So clearly we’re coming at this from very different angles.

    Listen now to learn more!

    Click here to listen to the podcast (24 minutes, 40 seconds)


    Click here for previous podcasts

    Click here to add the podcast feed to your RSS reader.

    The VideoNuze podcast is also available in iTunes...subscribe today! (note the link has been updated)

     
  • Akamai full banner - 2-27-17
  • Skinny Hulu Subscription Service Raises Many Questions

    With so much uncertainty in the TV and online video industries these days, I keep telling myself to never be surprised by anything anymore. But last night, when the WSJ headline, “Hulu is Developing a Cable-Style Online TV Service” popped up in my Twitter feed, I have to admit it tested the boundaries of my imagination.

    The most immediate head-scratcher was that such a move would position Disney and Fox, two of the three network shareholders in Hulu (along with Comcast, which is now a silent partner due to terms of its NBCU acquisition) as direct competitors of pay-TV operators, their biggest distributors. These companies spend billions of dollars per year to carry the very same TV networks that would now be included in the skinny Hulu lineup.

    continue reading

     
  • NABShow OVC - full banner - 2-8-17
  • AT&T’s New OTT Pay-TV Service Will Face Same Challenges as Sling TV

    Another day, another new video service. Or to be specific, another 3 new video services, all coming later this year from AT&T, which announced DIRECTV Now, DIRECTV Mobile and DIRECTV Preview yesterday. The most intriguing of the group is DIRECTV Now. Though few details were released, it feels like it will be more along the lines of skinny bundle Sling TV than full line-up PlayStation Vue. It will likely feature a low entry price with add-on packages of certain networks.

    While analysts and press recently reported that Sling TV ended 2015 with 500K-600K subscribers, I remain skeptical about how broadly attractive the service ultimately will be and more generally, how appealing the “virtual pay-TV operator” model is. Barring anything surprising from AT&T, it’s likely that many of my same challenges Sling TV faces will apply to DIRECTV Now as well.

    I’ve written about these at length in the past (here, here, here), but to quickly recap:

    continue reading

     
  • Akamai full banner - 2-27-17
  • Putting Sling TV’s Growth Into Perspective

    Skinny bundle service Sling TV got a lot of press last week as parent company Dish Network reported its Q4 ’15 and full year results. Based on a lot of assumptions, analysts MoffettNathanson estimated that Sling TV ended the year with 523K subscribers. Meanwhile, the WSJ cited unnamed sources estimating Sling TV now has more than 600K subscribers.

    Once again, Dish Network provided no detailed breakout on Sling TV’s subscriber growth. As many analysts have observed, that’s a deliberate strategy to obscure the subscriber losses occurring in Dish’s core direct satellite service. On the earnings call, Sling TV’s CEO Roger Lynch only said that the vast majority of Sling TV subscribers are not currently pay-TV subscribers, noting they were either cord-nevers or cord-cutters.

    continue reading

     
  • IBM Cloud Video - full banner - 12-8-16
  • Report: TV Viewership Patterns and Economic Realities Indicate Difficult Path for "Skinny" Bundles

    So-called "skinny bundles" of TV networks face long odds of success given the dispersion of actual TV viewership, cross-ownership of broadcast-cable TV networks by media conglomerates and underlying economic realities, according to a new analysis by MoffettNathanson.

    The conclusions align with points I made in last Friday's podcast and previously, as I've asserted that the "Swiss cheese" channel lineups found in skinny bundles will lack broad appeal. This was a central finding from recent Bernstein research as well. Conversely, bulking up channel lineups with more TV networks (as Sony has done with its new PlayStation Vue service) eliminates the opportunity for a cost-savings value proposition that would resonate most with would-be cord-cutters or cord-nevers.

    continue reading

     
  • NABShow OVC - full banner - 2-8-17
  • Sling TV: Old School Linear TV in New Online Wrapper Makes Success Unlikely

    Sling TV has received an enormous amount of attention since being announced last month at CES. Some hyper-enthusiastic observers have heralded Sling TV as a sign that traditional pay-TV is on the verge of crumbling. But, having now spent some time with Sling TV, I think a more accurate assessment of Sling TV is that it is fundamentally an old school linear TV service, modestly freshened up with a new online wrapper. In its current form, Sling TV looks very unlikely to gain much traction.

    continue reading

     
  • Akamai full banner - 2-27-17
« Previous | Next »

Sample