Comments on news posted 2014-01-23 16:12:59: Earlier this week the NPD Group released a report noting that a significant number of consumers are trimming back on premium channels like HBO and Showtime as an attempt to cut cable costs without fully cutting the cord. ..
...like Comcast's internet plus ( 25/5 HSI plus 10 channels including HBO) which offer a premium like HBO without needing a highend CATV package too will help HBO numbers in the next quarter, something similar might show up at showtime if HBO does well on this.
Up until a few years ago, I had HBO, Cinemax, Showtime, and The Movie Channel. When the cable bill started to spike, I dropped all of those except HBO, and that I only kept because my wife is a True Blood fan. She told me the series is over, so I might be dropping HBO as well now.
It was just last month that this forum was bouncing off the walls, citing NPD's nonsensical claim that pay-tv will cost $200/month by 2020.
I have a friend who pays around $180..he's proud of himself having every channel in the universe. No Netflix or anything else just cable company products so I don't see $200 by 2020 as being out of the question. Will people pay it?? That's the question.
I suspect they are simply conuting everyone usign their service. However, they are offering their services for free for 1-6 months to pretty much everyone (obviously hoping that people will keep the service or just forget to cancel it and start paying for the service). So I can see where their customer numbers are increasing. What I want to know is if their _paying_ customer base is increasing!
That's called churn, and it's a bad thing to have. It means your customer base isn't stable, with many coming and going. Two big problems with it:
1. If you're having to give new customers incentives to sign up, then your revenue is lower for the subs than for the old ones you lost. It also increases the chance that they'll leave once the promotional pricing goes away. 2. If the new subs ever dry up, and you're still losing old ones, you're really in trouble.
Also, I know some people get new service with 3 months free HBO or whatever, then promptly cancel. Those adds do nothing to the bottom line. One of my friends who recently got dish is doing this right now.
I suspect they are simply conuting everyone usign their service. However, they are offering their services for free for 1-6 months to pretty much everyone
EXACTLY!!! In their postings, a sub is a sub...whether they actually are PAYING or not.
I know this firsthand, due to the number of times I have been getting FREE &/or reduced pricing on premiums in the past 1-2 years thru DISH. When the promo(s) run out & I call to cancel them, they always seem to have some other kind of promo running, that they let me get (again). I then load up my DVR's with all the movies off the premium channels that I would like, then just let them sit there until I decide to watch them AFTER I canceled the premiums. (since you can offload these DVR's onto external HDD's, there's really no limit on how much you can keep; they're good as long as you have DISH service)
The premium channels are OK for FREE, or in the case of HBO or Showtime, at a reduced price; however, I would NOT pay full-price for these channels - particularly considering how expensive HBO is up to now!
guess there is no surprise why they are having problem serving all the content at once with that sort of growth rate.
Between that, the increase in HD/"Super" HD content streaming, the lack of ISP adoption of OpenConnect, and lack of Netflix Cache server adoption... me thinks their actual bandwidth needs are pretty far off from their projections just a year ago. Bet they're playing catch up big time. -- I'll make it work.... hand me that BFR.
That figure is possible, especially when you have multiple cable boxes in a household. And I have some friends who have six of them, and there are only two of them living in the house. One in their den, three in bedrooms, one in the kitchen, and even one on their screened-in deck.
I don't have any problems, yet. Then again, I'm using low video quality instead of SuperHD or 3D, which apparently requires ISP cooperation. What I've read Time Warner has refused to participate in their Openconnect program.
Christmas Eve before last is the only time I remember having issues. There was some CDN issue or some such thing.
NPD's "report" claimed the average pay-tv portion of the cable bill would compound at 6% and reach $200/month by 2020.
The math doesn't work, at all. One wonders if they hire only government employees...
We can always find exceptions where fools overspend, but that was not the focus of their claim.
In my view, DSLR and similar blogs should apply some healthy skepticism, and interrogate any release from NPD before citing it. But then again, maybe Senator Feinstein is one to something about "real" journalists...
Neither SuperHD or 3D take ISP cooperation in OpenConnect or Netflix caching servers anymore, Netflix gave up on trying to make those conditions for access. Those are some of the reasons I think they're in a big bandwidth crunch to some of the providers now. Some of ways they planned on saving bandwidth (widespread OpenConnect usage and limited SuperHD availability) didn't happen. -- I'll make it work.... hand me that BFR.
The arrangement of the cable companies Tiers also influence whether or not people are buying into the premium channels. If it's $1-5 more for HBO after they are already paying $120, there is a VERY good chance they will add the premium channel. People purchase like that very frequently, thinking % wise increase in price for their decision.
This also doesn't contradict that the cable industry as a whole is losing subscribers. It would just mean that more of those who still use cable buy into the premium. (Likely because it's a single digit % increase in their bill)
The best, a long long time ago, when it took months for movies to come out. When a VCR cost $500, and the only rental place was 30 minutes away.
Now, they have some great TV Shows, but the value just isn't there anymore. At $15-$20 a month on top of cable to begin with, I just can't see paying that when I can be patient and get those shows, plus everything else Netflix and Hulu has for the same price of HBO itself.
ATT gave me 3 months free of HBO when I signed up for UVerse. When I went online to cancel it they were offering it again free for 3 months, so that's that. I wouldn't pay for HBO but if they're going to give it to me I'll take it.