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SlideshowFiOS TV Director Cuts the Cord

Participants in the TV of Tomorrow NYC event include, from left to right, Luc Perreault, VP at The Weather Network; Sherry Brennan, SVP at Fox Networks; Tony Goncalves, SVP at DirecTV; and Maitreyi Krishnaswamy, director of FiOS TV, Verizon
Participants in the TV of Tomorrow NYC event include, from left to right, Luc Perreault, VP at The Weather Network; Sherry Brennan, SVP at Fox Networks; Tony Goncalves, SVP at DirecTV; and Maitreyi Krishnaswamy, director of FiOS TV, Verizon

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mendyk 12/8/2015 | 8:46:49 AM
Re: Yeah, well... The ESPN bundle reportedly will cross the $8 per subscriber mark in 2016. It now pays out close to $4.5 billion per year in rights fees for live events, which is more than half of the revenue it now gets for those subscriber fees. Let's be generous and assume that half of all pay-TV subscribers watch ESPN. That would mean for ESPN to just maintain revenue status quo in an OTT world, it would have to charge $16 a month for its bundle. What this means, in brief, is that Disney has an unsustainable monster on its hands. I'm not interested in spending significant time piecing together a cord-cutting menu of services, but I'm glad enough people are to maybe effect change.
186k 12/8/2015 | 6:31:54 AM
Fire her What a ridiculous thing to admit - just plain stupid. Verizon is making some dumb moves recently: acquiring Oncue and converting it into the ridiculous Go90 service, acquiring AOL when it knows zip about publishing. AT&T seems much smarter with their DirecTV acquisition. Cord cutting exists sure but the vast majority of users still want to subscribe to a bundle of services fromt their telco/cable operator including TV. Yes they might also stack on some other OTT servcies but pay TV in various forms will be with us for many years to come
steve q 12/7/2015 | 8:52:58 PM
Re: ha I have to say after reading that is that that Verizon need to pull out of the TV side of the business and more into a Fios data. Fios is still a way to push more customer that like to leave the cable side and give those customer a bigger piece of the pie and charge for the primary package,
lanbrown 12/7/2015 | 7:44:30 PM
Re: Yeah, well... Doesn't use the service that she gets for free.  That should really speak volumes about how she really feels about the customer experience the product gives.

 

The biggest issue in this industry.....the content providers.  They want all of their offerings in a bundle.  Take Disney, they want ESPN on the low tier offering and then want several dollars per subsciber; just for ESPN.  I have heard it is as high as $7 per subsciber.  Many consumers really want a la carte.  Only get what you want, not want Disney and likes say you want.

 

You really just can't use one companies offering if you want to cut the cord.  Take Netflix, there is some content that is not available on Netflix.  So you really need to add in Hulu and the Amazon Prime to get a more complete offering.  The sad part is, all three combined is less than what you would pay on a average month.  Some of the offerings are also commercial free...whcih you won't see with the cord models.
inkstainedwretch 12/7/2015 | 6:47:13 PM
Video revenue I am less convinced the bundle is dead than I was even 4 weeks ago. I think some content valuations were totally out of whack, and I am talking specifically about ESPN. Interestingly, with the value of the bundle open to re-evaluation, so too are the elements within the bundle open for re-evaluation, which I did not expect. The result could be sensible content/bundle pricing that benefits everyone, including consumers. I am well aware that's Pollyanna-ish thinking, but a girl can dream, can't she? -- Brian Santo
mendyk 12/7/2015 | 4:46:24 PM
Re: ha When most video is "over the top," what exactly would the differentiation be for a company like Verizon? It's not clear that VZ has figured this out yet. Mostly, VZ seems to be figuring out the things it DOESN'T want to do.
msilbey 12/7/2015 | 2:26:08 PM
Re: ha I tried Go90. it wasn't pretty.
mendyk 12/7/2015 | 2:12:23 PM
Re: ha Yes -- binge-watching Game of Thrones on a smartphone in the comfort of your tent (located near a free wi-fi source) may be the wave of the future.
cnwedit 12/7/2015 | 2:05:57 PM
Re: ha For a lot of telecom companies, the issue is that there are no real profits delivering video - it's eaten up by content costs. I  remember at least 10 years ago hearing warnings from some of the small telcos that were early to the IPTV game that the recurring cost of video content made that business very different from anything that telecom was used to selling. 

Comcast owns enough content that it benefits on the one hand from increases in content costs, even as its margins are squeezed on the other side. 

The bottom line of Mari's story is that cord-cutting is a very real phenomenon especially among younger viewers. Let's face it, Millenials are being priced out of the housing market, so they are creating the kind of households that will sustain high-cost video content packages.
mendyk 12/7/2015 | 1:56:13 PM
Re: ha Exactly -- which is why her statement about video service doesn't quite ring true. It sounds more like a pre-approved talking point to reinforce the idea that Verizon wants cost relief for video content.
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