Ala Carte, careful what you ask for

Discussion in 'General Satellite Discussion' started by tsmacro, Apr 1, 2015.

  1. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Yep... and on the other end of the spectrum... those channels that are only charging 50 cents per subscriber and are in the same package as ESPN, so they get those same 100 million x 25 cents or so... How would those channels come anywhere near that if they were forced to be a la carte?

    Answer... they wouldn't. So, there are a LOT of channels beyond ESPN that need to be in the tier model or they would not exist... which means all the griping IF it became a reality, people might love not paying for ESPN for about 5 minutes before they realize all the channels they wanted to watch just went POOF!

    ESPN would have to evolve, and accept less revenue and have less subscribers under an a la carte model... but they have a MUCH better shot at surviving in that reality than do most of the other channels.
     
  2. PCampbell

    PCampbell Icon

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    It would be nice to see a provider set up shop Ala Carte then we would see for sure what happens. I do not think it will save any money. As for ESPN Disney dose not keep anything that will not make a good profit.
     
  3. inkahauts

    inkahauts Well-Known Member

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    It's already happening. CBS at 6 a month. HBO for the same as it is for cable subs. It's always going to be the same or far more depending on what channel. The premiums can go about the same price other will have to be higher.
     
  4. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    It is happening on a limited basis ... CBS streams live only in select markets so you are waiting until the next day to catch programming in most markets. HBO Now has it's own limits. If people are willing to live within the limits of the service streaming could be an option. Just don't talk to people with OTA or cable until after you have watched the show(s) online. Spoilers!

    HBO is selling their product online the same way they have for years ... a la carte through a partner. I believe most providers will offer some limited form of their programming to streamers ... or offer bundles to companies like Sling TV. Not really much different that they are doing today except "delivery not included".
     
  5. PCampbell

    PCampbell Icon

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    Full scale la carte, a cable or sat company that is full la carte with no limits. That would work out great or crash and burn but either way we would know for sure.
     
  6. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    So far, it has crashed and burned every time:
    • Big Ugly Dishes had it, model didn't work at all. (I hated trying to order all the channels I wanted, looking for vendors, deals, etc.)
    • Intel TV died unborn
    • Others?
    So the risk of being the next to try it is pretty horrific. Unless you find a way to appease the channels and the customers, my prediction is it will fail every time.

    There needs to be an enabling technology. Streaming might be it--where we buy content directly from the content creators, bypassing all the middlemen--even netflix. But someone has to fund the content creation. Will microloans and crowdsourcing replace media buys from the major networks?

    Or will collections like netflix, hulu, and amazon replace networks? So we're still paying $50-$200 each month, but to libraries instead of cable companies and networks....

    Peace,
    Tom
     
  7. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    You all have a TOTAL misconception on how a la carte works.

    You can subscribe to HBO Now at $15. You can subscribe to CBS for $6. You can subscribe to Netflix for $9. You can sub to Dish Sling for $20.

    But if you do not pay for Internet or Data via LTE, you get nothing while you pay the fees above.

    As stated too many times, basic TV channels account for 20%-25% of the Programming expense (and your bill) depending on the MVPD. Channels/programs that are ALREADY a la carte account for another 20% of the MVPD's expenses. Those include HBO, Showtime, Starz, NFL ST, MLB EI, NFL CI, Video on Demand Movies, PPV events etc.

    Here is how a la carte would work.

    If you have basic package, add in roughly $20 or so dollars for HD, Whole Home Server and DVR - depending on the MVPD. A extra receiver or so and your bill is at atleast $100.

    Under a la carte, the MVPD would drop the basic programming charge or roughly $20-$25 bucks.

    So your base bill is $75 to $80 with no channels.

    Then you add in your channels a la carte. $36 minimum for ESPN....(you are already paying more)..$20 for 1 RSN......etc etc etc. Put in $10 for Disney. $10 for Bravo. etc etc etc.

    Congrats. You have 4 channels and are paying more than you did for the package.

    When you figure a la carte, quit thinking your entire bill.

    The core charge will always be there.

    Just like it is with your water bill. You pay extra for the actual units of water used.

    Just like it is with your smartphone bill. You pay extra for data use.

    Just like your car. You pay extra for Gasoline, oil etc.

    Just like subbing to Netflix, Amazon, CBS, HBO and Dish Sling - unless you pay for the Internet, you will get nothing while paying a la carte.

    Just as FiOS customers found out.....they really cannot save money under what was announced this past weekend.
     
  8. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    The "core" package on any a la carte, even without programming, will be high - as stated above.

    FiOS is just playing with words as a la carte is a buzz word now.

    All FiOS is doing is putting in a "non-sports" basic package as most MVPD now have.

    Their "Sports" add on package is just a new basic package + sports - or close to their current "essentials" package, which is why they think they can offer it under current agreements - while ESPN is saying they cannot.
     
  9. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    PPV per Sporting Event. It's coming.

    NFL told you as much this year.
     
  10. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    Local OTA Channels account for 35% of the viewing on any MVPD. It was even higher in the late 90s before all the RSNs.

    That is why DBS did not take off until local channels were included.
     
  11. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    Your analogy is the equivalent of saying I pay $10 for a movie ticket so I should only pay $10 for a Sporting Event.
     
  12. SomeRandomIdiot

    SomeRandomIdiot Godfather

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    I have continued to tell you that the programming costs for MVPDs are not what people think over and over.....and people still do not get it.

    Here are some facts everyone needs to digest....

    Floyd Mayweather and Manny Pacquiao are expected to split $300 million — here's where the money comes from

    http://www.businessinsider.com/mayweather-pacquiao-fight-purse-split-2015-4

    • Pay-per-view — Branch estimates pay-per-view sales will generate $270 million in revenue alone based on purchases in 3 million homes. However, some believe sales could reach 4 million homes, which would push this portion of the revenue up to $360 million. Of that, 55-65% will go to the fighters or ~$150-233 million with the rest going to cable companies and satellite providers (30-40%) and HBO/Showtime (7.5%).
    MVPD are getting 30% - 40% of the price
    HBO/Showtime getting 7.5% of the price
    So who is really gouging you?
     
  13. PCampbell

    PCampbell Icon

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    It would be nice to see a provider set up shop Ala Carte then we would see for sure what happens. I do not think it will save any money. As for ESPN Disney dose not keep anything that will not make a good profit.
     
  14. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Not sure why my quotes were lumped into the "you don't know how a la carte works" megaquote... I think the person who quoted that jumble misunderstood what he was quoting from at least some of us.

    I never got into who is making what money off of whom... I merely state what I always do that I don't see a world where a la carte ends up cheaper AND better for everyone.

    People who barely watch TV might get TV cheaper if they can just pay for the one channel they want... virtually everyone else will pay the same or more for less choice than we have today with the bundles. Lots of channels would go away, other channels would change to survive... and most everyone would lose in some way once the dust settles.
     
  15. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    I believe a person who set up such a service could end up a millionaire ... if they were a billionaire before they started the service. :)
     
    1 person likes this.
  16. Shades228

    Shades228 DaBears

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    No one is gouging you except yourself if you order it.


    If we went ala carte I also believe that ESPN would be one of the first to fold or at least go into bankruptcy protection unless they have paid upfront for their contracts. They just have too much money going out for too long. Either that or they would make a "bundle" themself. I could see like $15 for just ESPN, $20 for ESPN Suite, and $10 for EPSN 3/Watch ESPN or $25 for all.
     
  17. lparsons21

    lparsons21 Hall Of Fame

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    Utter crap statement!
     
  18. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    It has been done before, in big ugly dishes. And attempts to set a new system have crashed and burned before getting off the design board.

    In C-Band consumers hated it and in the current market, networks hate it.

    Peace,
    Tom
     
  19. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    I certainly didn't "hate it" when I had C-band.

    In fact, what I most hated in the transition from most things being freely accessible to "how can we squeeze the American public today" was losing access to CBC.

    Let's not kid ourselves. Disney/ESPN/ABC, CBS/Showtime, NBCU, and Newscorp/Fox are all doing quite well financially. They are not yet competing with each other.

    If instead of mixed packages created by and from the cable/satellite companies we were offered programming packages from the companies that own the networks, that would be competition. But the manipulation of Congress, the FCC and foolish consumer minds left us without competition in the TV signal world.

    In a few more years, the internet will have (already has?) changed all of that unless of course there will be effective manipulation of Congress, the FCC and foolish consumer minds.
     
  20. KyL416

    KyL416 Hall Of Fame

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    And at least then you had the option to subscribe as long as the channel was available in the USA and used a compatible format like Videocipher or Digicipher, since in most cases they were the same feeds that cable and satellite providers use.

    If it were to happen now you would be at the mercy of your local cable or satellite provider carrying the channels you want. If you're a fan of a popular and higher rated channel like Nickelodeon, Disney, USA, MTV, TNT, TBS, FX, AMC and TLC you're fine. If it's a niche channel like Ovation, TeenNick, Sprout, Reelz, VH1 Classic, Palladia, Boomerang, Fuse, TV One, BBC America or UP, you might not be so lucky if not enough people subscribe and your provider stops offering them, they drop the programming you like and try to appeal to a wider audience since they can no longer rely on their more popular sister channels for distribution, or they fold entirely.
     

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