Forbes speculates that the rumored future Apple TV would create a demand for single channels, which could potentially break up the cable pricing monopoly.
Rather than paying for a package of a hundred channels, users would pay a la carte for content just as single-channel apps have become popular in the mobile sphere.
“Presumably, Apple wants to disrupt this market the same way the iPod and iTunes made it easier for consumers to buy music, and the way the iPhone is slowly moving the cellular industry to data plans over voice plans (see: iMessage, Facetime),” suggests the article.
Providers such as Time Warner Cable, Optimum and DirecTV already have apps for live streaming of channels. And ESPN, CNN and Major League Baseball have their own apps.
“[Cable providers] might consent to separate channel apps as long as each still requires an overall subscription…that would certainly put a crimp in [Apple’s] potential plans to revolutionize television,” explains Forbes. “And if Apple provides incentives for channels to go it alone, the fight could be massive.”
Google is offering an update to Google TV that includes a streamlined UI, quick-launch bar for most-used apps, an app that can locate 80,000 movies and TV episodes via the Web or TV, and a new TV-oriented YouTube interface.
The Android Market looks to launch current and new apps specially optimized for television (access to the Android Market may prove the biggest step for Google TV).
YouTube is looking to create original content and become a “next-generation cable provider” by signing deals with media companies and celebrities.
However, the service has been hindered by TV networks that “continue to block Google TV from viewing Web sites that stream some of their shows that are freely available to personal computer browsers,” reports Forbes. “That’s a big turn-off given that other devices such as Apple TV, Roku, and many others offer access to more TV content.”
In a related post, GigaOM lists the more notable new features and includes a 7-minute video demo.
“The new version of Google TV isn’t really all that groundbreaking; rather, it’s what Google TV should have offered all along,” suggests GigaOM. “And that seems to be exactly what Google was aiming for with this release — not a big flash, but finally a solid base that can be continuously improved both through Google’s apps as well as applications from third-party developers.”
A new report from media forecasting firm Magnaglobal shows that by 2016 cable subscriptions will dramatically decline as online becomes the medium of choice.
Magnaglobal predicts that 9 million households will not subscribe to traditional pay TV services (triple today’s amount), of which 4 million will be cord cutters who cancel their service to opt for content via the Internet.
Additionally, The New York Times points out that the number of young consumers who have never signed up for cable or satellite service, but rely on services such as Hulu and Netflix for their media, will continue to grow. “The number of people who never signed up for cable is expected to double — to 5 million, from 2.5 million today — by 2016, according to the report.”
The growth of DVR ownership is also expected to decline, as consumers continue to adopt devices that enable streaming of content via the Web.
The weak economy is leading cable operators to reverse their opposition to so-called “a la carte” programming. Comcast and Time Warner have lost 1.2 million customers in the last 12 months.
Programming costs have risen 6-10 percent annually over the last decade. And the fear is that it will continue as they see ESPN, for example, sign a $15 billion, 8-year deal with the NFL. Cable and satellite operators are also now paying to retransmit local broadcast channels.
“There is a growing recognition that the current model is broken,” says Craig Moffett, cable analyst at Bernstein Research. He expects smaller, less costly programming packages to emerge as Time Warner is doing with its TV Essentials pack.
“The specter of unbundled programming is likely to encounter fierce resistance from network owners such as Viacom Inc or Discovery Communications Inc, which are keen to maintain the economics of selling their most popular channels as a package with their smaller, nascent networks,” reports Reuters.
Turner is working with Google TV to launch apps giving users who authenticate they are pay TV subscribers access to full-length episodes of TBS and TNT shows.
Turner is already doing this on the Web and through iPad and iPhone apps. The broadcaster confirmed it will offer the new apps, but did not say when they’d be available.
The next version of Google TV is expected in a few weeks. “The second iteration of the platform will be based on Android 3.1 (a.k.a. Honeycomb) and have access to the Android Market,” reports GigaOM. “Dedicated apps as well as authentication features could possibly convince other TV networks to embrace the platform as well, but it’s unclear how this would be received by consumers.”
Consumer interest in Google TV had been initially tepid but is showing some signs of improvement. Logitech, for example, was forced to drop the price of its Revue set-top box from $250 to $99 in July, but then the companion box to Google TV “made a brief appearance in Amazon’s list of the ten best-selling gadgets last month,” indicates the article.
French company Movea is looking to provide motion control options for TV and set-top box manufacturers.
The company’s MoveTV platform offers remote control technology to OEMs, and “opens up the company’s tools to developers for building games and apps,” reports Engadget.
The post lists early partners: Korean cable provider C&M Media — and Remote Solution, which “will be licensing Movea’s SmartMotion and integrating MoveTV into the set-tops provided to C&M.”
“MoveTV is the first platform that takes an ecosystem approach, offering an integrated suite of SmartMotion technology components tailored to the needs of service providers, application developers and the different PayTV ecosystem partners. MoveTV platform components work together seamlessly on the backend and are designed to be modular, giving ecosystem partners the flexibility to adopt different levels of motion-driven functionality and capabilities,” says Sam Guilaumé, CEO of Movea.
Turner Broadcasting has begun airing a series of television commercials on TNT and TBS that lets viewers know they can watch TV episodes streamed online if they have a cable subscription.
The campaign is designed to educate consumers about the concept of TV Everywhere.
“Consumers have bought tens of millions of iPhones and iPads,” explains Steve Koonin, president of Turner Entertainment Networks. “Our vision is that TV Everywhere kind of becomes the consumer-enabling technology that allows them to unlock the potential of those devices.”
An instructional video is also posted on YouTube that goes into detail about how to download the app and login (for example, viewers should be aware that they will need to have their cable bill account number available during the process).
It is interesting to note that Nielsen is crediting the viewing in its ratings if the show is watched within three days of airing.
ESPN has announced an eight-year extension of “Monday Night Football” that includes 3D broadcast rights, expanded NFL studio programming, highlight rights for TV and ESPN.com, continued Spanish language rights, the Pro Bowl, the NFL Draft, and rights to simulcast network coverage on tablet devices through the WatchESPN app.
The deal, which runs from 2014 to 2021, “should help quell ideas that ESPN 3D might be axed after its removal from U-verse,” suggests Engadget.
According to the press release: “The extensive package of NFL rights will fuel the continued growth of ESPN year-round, boosting its core television business while at the same time supporting the company’s ‘best available screen’ strategy with NFL programs on TV, online and on mobile devices via authentication and digital rights.”
The agreement will also lead to “Monday Night Football” celebrating its 50th anniversary season on ESPN in 2020.
Netflix walked away from another deal with Starz after that company insisted on a tiered-pricing model similar to what they would get with a cable channel. Netflix did not want to tamper with the simplicity of its monthly fee model.
Netflix had reportedly offered Starz more than $300 million per year to renew their agreement.
With the demise of the Starz deal, Netflix customers may feel that they are paying more and getting less. Still, Netflix counters that their Starz content accounts for only 5-6 percent of domestic viewing.
Netflix will be challenged by competitors like Hulu, Amazon, Apple and Microsoft XBox Live. Moreover, cable companies are increasingly offering similar access to video through TV Anywhere services.
Starz may either sell its content to a Netflix competitor or try and create its own streaming brand like HBO.
Consent from the U.S. Department of Justice for the Comcast-NBCUniversal merger has been approved, but with a new condition.
Comcast purchased 51 percent of NBCUniversal from General Electric in January, creating a $30 billion business that includes broadcast, cable networks, movie studios and theme parks.
At that time, the Department of Justice said Comcast could acquire NBCUniversal only if it ceded control of Hulu and made stand-alone broadband service available at $49.95 per month for three years, but the settlement still required final approval.
Last week, Judge Richard Leon delivered final approval, but stipulated that the federal government would monitor whether rival online video services, such as Hulu or Netflix, demand arbitration to license content from Comcast-NBCU for the next two years.
The ability of rivals to obtain programming was one of the key concerns of the DOJ and the FCC during reviews of the merger.
“Since neither the Court nor the parties has a crystal ball to forecast how this Final Judgment, along with its arbitration mechanisms, will actually function … I believe that certain additional steps are necessary,” Leon said in a court order.
ESPN has selected Mountain View-based Ooyala to power the sports broadcaster’s streaming video content. The platform will replace a proprietary model administered by ESPN.
Ooyala’s platform will reportedly increase the quality of playback, reduce load times and streamline back-end management.
“It’s a serious feather in the cap and vote of confidence for the four-year-old video startup, as ESPN is one of the biggest producers of online video content, with 400 unique visitors hitting play on ESPN videos every second (and serving over 1 billion streams per month),” reports TechCrunch.
The media technology site sees the move as positive: “All in all, it’s great to see ESPN finally offering a quality player with fast load times and a more linear on demand experience in which video queues and layouts feel more akin to a television viewing experience — and can compete in ease of video use with YouTube.”
Premium cable network Epix has had its library of Paramount, MGM and Lionsgate movies available for streaming for nearly two years.
Since its launch in 2009, Epix has added original programming to its library of 3,000 film titles and has expanded its number of distribution partners.
“The channel is now available through Dish Network, Verizon FiOS, Cox, Charter, Mediacom, Suddenlink and the National Cable and Telecommunications Cooperative,” reports GigaOM. “Together, those distributors have more than 30 million subscribers, of which Epix has managed to sign up 9 million to its network.”
But now that TV Everywhere has become the trend with other networks, Epix is looking to differentiate itself in additional ways.
Epix is building apps for new devices (the network is already available on more than 100 devices), producing more of its own exclusive content, adding video that complements its library of movies, and leveraging partnerships that provide original video content.
Clearly, premium cable (and perhaps all television) needs to look beyond traditional practices to survive. Is Epix becoming the model of what a premium cable channel needs to be in the era of TV Everywhere?
Variety reports that ESPN remains enthusiastic about 3D technology, despite its slow adoption (and AT&T’s recent decision to drop ESPN 3D from its U-Verse TV service).
ESPN is pushing its 3D effort by focusing on combining 2D and 3D production (nicknamed “5D”), which the network says brings costs down substantially. 2D/3D production includes slower cutting and more use of robotic cameras. As the production crews gain more experience in shooting sports beyond HD, the equipment, camera placement and general approach continues to improve.
“Some innovations created for 3D have even made it over to the 2D side,” reports Variety. “For example, 3D cameras need to be closer to the action than 2D cameras, so the high 50-yard-line shots that are a staple of football coverage are problematic. To get closer, ESPN put a 3D camera on a 22-foot mast on a small vehicle that goes up and down the sideline.”
ESPN stands by the technology, explaining that Twitter feedback has been overwhelmingly positive. And some play-by-play announcers have even indicated they don’t want to go back to watching 2D.
The six largest cable and satellite TV providers lost 580,000 customers in the second quarter. This marks the largest such decline in U.S. history.
The number of pay TV subscribers has declined in three of the past five quarters.
“Rising prices for pay TV, coupled with growing availability of lower-cost alternatives, add to a toxic mix at a time when disposable income isn’t growing,” explains Sanford C. Bernstein analyst Craig Moffett. “For younger demographics, where in many cohorts unemployment is north of 30 percent, and especially for those with limited or no interest in sports, the pay TV equation is almost inarguably getting less attractive.”
Netflix and Hulu provide lower cost options. Competition from AT&T and Verizon is also having an effect.
Providers are struggling to deal with the trend. Dish, for example, is re-positioning itself away from lower income customers. Instead, the company plans to focus on more expensive offerings to increase average revenue per user.
Time Warner launched the HBO GO platform earlier this year, with Android and iPhone apps that stream HBO content to mobile devices.
TG Daily reports that HBO GO may soon be “getting optimized” for TVs, with the platform becoming available on the PS3, Xbox 360, and other Internet-ready devices.
“It may seem like a pointless feature, because if you’re watching your TV, you could just tune into your cable box and watch HBO On Demand from there,” explains TG Daily. “But this way, you’d be able to take your HBO subscription to a friend’s house, or watch content on the app that may not be available on the current HBO On Demand library.”
In addition to regular programming content, HBO GO provides exclusive content (such as behind-the-scenes clips) and an intuitive video search interface featuring customizable lists.
