TheRinger.com reports on the Winners and losers with the rise of TV’s “Skinny Bundle”.
Tech Giants: Google, Facebook & Amazon – Access to new revenue streams by converting existing customers to paying TV subscribers. Broadcast Networks: ABC, NBC, and Fox & CBS can now demand higher carriage rates with more carriers. This allows them to convert over the air (OTA) antenna media transmissions of local affiliate channels into retransmission agreements (essentially monetizing what was previously free to viewer OTA transmissions). Viewers want local affiliate channels as a part of their TV packages to avoid the hassles of placement & hookup of an unsightly digital antenna. Sports Leagues (NBA, NFL, etc) benefit as newer tech companies may be more concerned about growth than immediate profits and thus willing to lay out large sums to air major sporting events and the monetizable the viewers they attract. Casual TV Watchers also stand to benefit handsomely. The average cable bill now sits at around $103, while skinny bundles range in price from about $20 to $40.
Sports Networks like ESPN are quickly learning that not all customers have a die-hard interest in sports. Having been previously bundled into bloated cable channel lineups, Sports Networks are now is being chopped by many new skinny bundle offerings. There are many viewers that are perfectly content with this new development. Smaller underfunded Niche Networks that were previously jammed in with hundreds of other lesser watched programming are being jettisoned from the skinny bundles. Lesser watched programming may be “shown the cutting floor” as networks focus energies on their flagship properties. Classic Cable & Satellite companies are having to resort to offering skinny bundles through their affiliate internet TV streaming divisions. The hope is to persuade new customers to buy skinny bundles, not to have existing customers downgrade or worse yet, cut the cord and jump over to a competing provider. Lastly, hard-core TV Watchers may find that assembling all the content they want to be challenging and cumbersome. These will likely stay with their traditional cable providers to avoid such hassles but will continue to pay a premium price for doing so.
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Source: TheRinger.com – The Winners and Losers of the Rise of TV’s “Skinny Bundle”