VideoNuze Posts

Yesterday Hulu and Discovery announced that 5 additional Discovery-owned TV networks will now be included in Hulu with Live TV, the virtual multichannel video programming distributor (“vMVPD” or “skinny bundle”), bringing the total to 8. In addition, approximately 4,000 episodes of Discovery programming will be added to Hulu’s SVOD library.

The deal further increases the value of Hulu with Live TV to its subscribers. But it also raises the question, yet again, of ballooning vMVPD programming expenses and how these impact profitability. Traditional multichannel pay-TV providers have steadily raised their rates over the years to offset higher programming costs (leading to the lower price opportunity that vMVPDs are trying to capitalize on).

continue reading

Verizon has announced an aggressive, video-focused offer for its initial 5G launch, underscoring how potentially disruptive wireless telcos could be for both broadband and pay-TV services.

Starting tomorrow morning, residents of Houston, Indianapolis, Los Angeles and Sacramento will be able to visit “First on 5G” to determine whether Verizon 5G Home service is available in their area. If it is, then the service will become available beginning October 1st (though it’s not clear how quick activation would be). The introductory package is extremely compelling and includes:

continue reading

I’m pleased to present the 435th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

Escalating programming costs for pay-TV operators are a chronic issue. In the age of cord-cutting and proliferation of SVOD, offsetting these costs with rate increases is no longer an option. One new solution being proposed by AT&T Communications’ CEO John Donovan is “engagement pricing,” whereby TV networks would be paid based on viewers’ actual consumption.

As Colin explains, it’s a break from industry norms, and even with AT&T leveraging Warner Media’s networks, it will be very difficult to persuade other networks to follow suit. Why get paid on viewership when you’re already getting paid regardless of how many people watched?

We then shift to CBS Sports’ decision this week to stream Super Bowl LIII to mobile devices without requiring a pay-TV subscription. It’s another nudge toward opening up sports to non-subscribers, though Colin and I agree the vast majority of marquee sports will remain locked behind pay-TV subscriptions.

Listen in to learn more!

 
Click here to listen to the podcast (23 minutes, 7 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!

CBS Sports announced yesterday that it will extend unauthenticated streaming of Super Bowl LIII to mobile devices. The move means that viewers do not need to have a pay-TV subscription in order to watch the game on mobile, nor do they need to have wireless service with Verizon, as has been required in past years.

It also means that mobile streaming will be on the same footing as desktop and connected TV viewing, both of which had unauthenticated access the last time CBS had the Super Bowl rights, in 2016. The game will also be available to CBS All Access subscribers.

continue reading

I’m pleased to present the 434th edition of the VideoNuze podcast, with my weekly partner Colin Dixon of nScreenMedia.

First up this week, Amazon is said to be planning a free ad-supported video service, similar to Roku’s The Roku Channel. The new service, dubbed Free Dive, would be targeted to the nearly 50 million Fire TV users. Colin and I both like the move a lot, as we see multiple promotional and new revenue benefits, especially if Amazon can attract TV ad dollars. However, a key challenge is finding enough compelling content to make Free Dive interesting to audiences.

We then transition to talking about Hulu. Colin has developed a forecast for subscriber and revenue growth for Hulu through 2020 which he explains. He sees much of Hulu’s revenue growth coming from its Live skinny bundle service, although its profitability will remain challenged due to high programming costs.

Listen in to learn more!
 
Click here to listen to the podcast (23 minutes, 10 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!

Add Amazon to the growing list of companies that are gunning for their share of TV ad dollars. According to a report in The Information, Amazon is planning to launch a free, ad-supported video service for its Fire TV users that may be called Free Dive. As described, Free Dive looks to be very similar to Roku’s The Roku Channel, which is available to Roku users and as of a few weeks ago also on the web.

For Amazon, the move makes perfect sense in a number of different ways. First, it’s a great complement to the growing array of paid video options Amazon offers (TV programs/movies in Prime, SVOD services in Amazon Channels, transactional, etc.). Free, ad-supported video gives Amazon its own inventory to promote all of these paid services in various ways.

continue reading

Major SVOD services’ popularity continues to expand, with new research from Leichtman Research Group finding that 69% of U.S. households now subscribe to either Netflix, Amazon Prime and/or Hulu. That’s up from 64% last year and 47% in 2014.

Also noteworthy is the rise of multi SVOD service households. LRG found that among SVOD households, 63% now access more than 1 SVOD service, which is up from 38% in 2015. That means that 43% of U.S. households now access more than one SVOD service, more than double the 20% rate from 2015.

continue reading on VideoNuze iQ