A recent OTTSquared article highlights the changing sensibilities of discerning viewers. Gone are the days of TV consumers paying hundreds of dollars per month for hundreds of channels they never watch. This has led to a new paradigm of “cord shavers”, that is, consumers opting for smaller bundles that contain a portion of their favorite content. After years of being fleeced by bloated cable packages, recalcitrant consumers are buying “skinny bundles” containing a subset of channels previously subscribed to. The challenge facing content distributors is forcing subscribers to “take hundreds or none at all.” While this is an interesting paradigm for consumers, it’s also a quandary for distributors all of which are losing (cable/satellite) subscribers at an alarming rate, sometimes to competition but very often to their own OTT (internet) division. So while technically not a loss of a customer it winds up being a customer paying a lot less. The article goes on to note that “This has also led to a stark choice for big media companies, who collect retransmission fees on dozens of diverse channels, is now this: do you want to make half of the money that you used to make from each subscriber, or none of it?” What’s better, 50% of something or 100% of nothing? Read the whole story here.
Source: OTT Squared – https://ottsquared.com/road-to-a-la-carte-tv-fa455b22dafe