(01-07-2015 10:37 AM)georgia_tech_swagger Wrote: (01-07-2015 09:09 AM)Lou_C Wrote: (01-06-2015 05:16 PM)georgia_tech_swagger Wrote: (01-06-2015 02:09 PM)CardinalZen Wrote: This not al a carte. It's still a bundle. I'm thinking this is not the future.
It is a stepping stone on the way to a la carte.
I don't think so. This is a niche service. It's one that I think it great, and I'll probably subscribe, but still niche.
A La Carte options may indeed become more prevalent, but that will be a niche too. There are just not that many people that want just 3-5 channels. Once you get the channels you want, your wife wants, your kids want, you're up to 10-15 channels, and paying nearly as much as you were paying for 200 channels.
A la carte channels aren't going to cost $1-2 a piece. They're going to cost $10+. We'll see what HBO Go launches at. Most people will choose a bundle of 200 for $70 a month over $50-60 for 15 channels.
I'm not against a la carte, it would be nice to have options. I have a wife that doesn't like to watch tv and teenagers who are the same way. We could live with ESPN, AMC and HBO or something like that. But bundling will remain a better deal for most people.
It won't be that much a la carte except on big sports channels. Channels will have to rely on the advertiser primarily. I bet some would be free and entirely ad supported. And you'd see more aggressive OTA national build out. And you'd have a la carte discount bundles too. Discounts for buying a year up front. Etc.
With all due respect, I think you are completely wrong. There's virtually no possibility that a network could produce the type of programming they currently do with the revenue from purely ad-supported or a nominal charge.
What you could get with that is stuff like Funny or Die, or repackaged Youtube clips, etc. Stuff with a negligible financial investment in content. The kind of stuff that currently exists. But you're not going to get original programming like say the History Channel or SyFy on that model.
Advertising revenue is going to be almost nil without bundling. How much do you think can be charged for advertising available to 700-800k people, which is currently available to 20 million?
There is no model where anything that is currently thought of as a major cable network is available for small costs, and continues to look anything like it does. Smaller more niche networks will just go away completely without the "socialism" of bundling.
The more logical outcome will be more variety in bundles, both of an online nature, and from traditional cable companies. Probably also some a la carte services made available. There will create things to go after that group of people who really have dumped cable, but would be willing to pay for a couple channels. Getting $20 from those folks instead of nothing will be worth it.
But true 100% a la carte will never be the norm, because for the vast majority of consumers, they won't want it when they see what it looks like. They just want some more varieties of bundles at lower costs.