CenturyLink Embraces OTT Video

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kq4ym 2/22/2017 | 8:24:12 AM

Re: Something's Got To Give It does seem that the DirectTV play may be a cost saver, having to not reinvent the wheel as far as getting programming to the customer, and as noted "surging video programming costs are cutting deeply into their profit margins," forcing CenturyLink to look for ways to cut that expense without cutting wanted services to it's customers.

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brooks7 2/13/2017 | 9:47:43 PM

Re: Content costs

"I am curious how its cheaper from a programming costs perspective or is your point that they will carry less channels and therefore their programming costs will be less? "

The latter and thus the bundles cost less. Profit about the same.

seven

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dashnerp1 2/13/2017 | 5:30:43 PM

Re: Content costs but the article states:

But those new pay-TV subscribers are increasingly coming at a hefty price. On the earnings call, CenturyLink executives lamented that surging video programming costs are cutting deeply into their profit margins and turning Prism TV into more of a loss leader than a profit center for the company.

I am curious how its cheaper from a programming costs perspective or is your point that they will carry less channels and therefore their programming costs will be less?

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brooks7 2/13/2017 | 1:32:32 PM

Re: Content costs Its not cheaper.

It is the whole skinny bundle thing. I think over time, the cable companies in particular will have to relook at the use of spectrum. As skinny bundles progress, will we really need to broadcast so many channels?

seven

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dashnerp1 2/13/2017 | 10:54:15 AM

Content costs Perhaps this is a dumb question - why are content rights going to be cheaper delivering via OTT vs IPTV?

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danielcawrey 2/11/2017 | 8:17:19 PM

Re: Something's Got To Give While IPTV might have been attractive a few years ago, it's clear OTT is where it's at.

It's less costly than OTT. And people want to stream whenever, wherever. That's the new paradigm in video content.

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inkstainedwretch 2/10/2017 | 1:50:16 PM

Something's Got To Give Pressure on service providers from Wall Street and investors to keep increasing ARPU. Pressure on programmers from Wall Street and investors to extract more money from their distributors. Meanwhile, more and more consumers looking for ways to economize in a challenging jobs market are reevaluating their TV subscription options. Cost/bit for video delivery doesn't seem to be falling fast enough -- at least not yet. I can't see how the tension among these trends is sustainable for much longer.

-- Brian Santo

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