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Report Suggests Focus on Live Streaming is the Wrong Strategy

A new study suggests that consumers aren't quite as into live TV streaming as many companies seem to think they are. According to a new study by Market Strategies International, trying to build streaming services that mirror traditional live, traditional cable offerings isn't really what consumers want. The study claims that just 11% of all streamers pay for live streaming television, despite a rise in such offerings like DirecTV Now, Sling TV, and YouTube TV. Time-shifted on demand content remains the most popular option by far, notes the report.

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The survey found that streaming overall remains hugely popular, with 73% of the population using some type of streaming service, and 29% having downgraded or canceled their traditional TV services.

“While Netflix has the highest use rate and share of wallet by a long shot and is the provider to beat--there is not a clear winner yet," states company VP Greg Mishkin. "None of the current providers has cracked the code on what consumers want. However, the research clearly shows that the strength of the leaders is due to their ability to break free from the old rules of TV."

That hasn't been easy for a cable and broadcast industry that seems to believe it can milk the aging traditional TV cash cow indefinitely in the form of bloated channel bundles and endless rate hikes. And while some companies (notably Dish and Sling, and AT&T with DirecTV Now) have taken risks and offered cheaper, more flexible alternatives, even these offerings tend to try and mimic the structure of traditional television.

"TV providers are failing to recognize that the habits and needs of the viewer have dramatically changed, and the old rules of television no longer apply," Mishkin added. "TV providers must evaluate and revise the business model to fit the needs of the consumer, because if they don’t they are setting themselves up to fail."

Most recommended from 30 comments


rradina
join:2000-08-08
Chesterfield, MO

8 recommendations

rradina

Member

Commercials?

The quantity of commercials peddled by "pay TV" cable channels is out of control. When a program ends they often subject us to some form of split screen that scroll credits of the previous program while the next program begins. The interruptions intensify near the end of a program. Whether it's commercials, ads for other programs, upcoming previews or "extras", the content injection is brief surrounded by massive commercial blocks. Sometimes the end of a program's content (not just credits) is in split screen.

This form of entertainment is beyond its Icarus moment. On-demand, commercial-free streaming is so much more enjoyable. Switching between the two is like renting a new luxury sedan for a few days and then returning to a daily "economy" driver that's 10 years old and well beyond 100,000 miles.

mixdup
join:2003-06-28
Alpharetta, GA

6 recommendations

mixdup

Member

Duh

I have been saying this all along. "Cord Cutters" aren't leaving just because of the method of transport. There are two groups that in some cases they overlap. But overall there's two main motivations for cord cutting

One group wants to get out as cheap as possible. They buy an OTT streaming service to get a skinny bundle they can't get from a traditional MVPD. They are content to wait 2-3 years for a show to show up on Netflix. The more technically savvy will pirate things they really, really want to get asap or they'll share passwords with their parents.

Then, there are those who want to cut the cord based on user experience. Price isn't as big an issue for these folks. They want a Netflix or Plex-style interface to current shows with little to no ads (most important is no ads breaking the show up). They'd pay what they pay now if it meant they could have that kind of experience. I have a theory that this is what Apple has been trying to build, but without commercials it is just too expensive (if the content providers are even willing to sell the content without ads)

If the content providers would get their head out of the sand and/or their backsides, they would realize this. Dump the unprofitable crap channels that no one watches and start building SVOD. Use the savings from not having the cruft and infrastructure of those linear channels to price the service close to what it costs to buy cable today but don't put ads on it. Make it as close to Netflix in UI as possible. You'll print money. I promise.

Linear streaming services like Sling, etc really should be relegated to things like live news and live sports. Long term those are the only things we'll watch "live"
sestrada
Premium Member
join:2012-11-05
U.S.A.
·Charter

2 recommendations

sestrada

Premium Member

It's the price that pushed me away

I doubt I'm alone in the group that has no problem paying for cable tv and netflix

Cable company got too greedy and raised the tv bill so much, that I cancelled it and bought an antenna

Going internet only seems shortsighted since its the same company bringing both signals

If they don't milk us one way, they'll milk us another