Annnd... we have our first Streaming casualty.

Discussion in 'DIRECTV General Discussion' started by SledgeHammer, Oct 29, 2019.

  1. SledgeHammer

    SledgeHammer Icon

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    Just as I predicted, the dominos are beginning to fall as we have our first major streaming casualty. PlayStation Vue goes belly up on Jan 30, 2020 "as Sony struggled under the high cost of content".

    Sony will discontinue PlayStation Vue on January 30, 2020

    Shocker... NOT :rolleyes:. My magic 8 ball says Philio is next.
     
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  2. lparsons21

    lparsons21 Hall Of Fame

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    Since the demise of PSVue has been nearly a forgone conclusion for quite some time I can’t quite give your magic 8 ball too much credit.


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  3. espaeth

    espaeth AllStar

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    I’ll bet a virtual beer that doesn’t happen.

    The key difference is that the principle investors in Philo are the networks offered by the service. A&E Networks, Viacom Networks, and Discovery/Scripps are to Philo what Disney is to Hulu.

    It’s that consortium of content producers’ “Direct to the consumer” offering.
     
  4. AngryManMLS

    AngryManMLS Active Member

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    It's sad as Playstation Vue actually worked very well from the trial period I gave it.
     
  5. SledgeHammer

    SledgeHammer Icon

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    Sony has a pretty big wallet too. PSVue failed because, as I've said repeatedly to the annoyance of a few lol, artificially low "lure them in" prices and bleeding tons of cash isn't really a sustainable business model for the tiny amount of customers they're pulling in.

    Disney has already spent 2-3 BILLION and they have ZERO customers. They better hope they ramp up as fast as they're claiming they will. But unlike PSVue and Philio, they have the name value.
     
  6. techguy88

    techguy88 Well-Known Member

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    Pretty much this will leave Fubo TV & YouTube TV as the only independent live OTT services. The rest have some form of ownership to distributors (AT&T TV Now, Sling TV) or the broadcasters (Hulu with Live TV & Philo). Those four are safer because of common ownership. With PSVue's demise I doubt there will be another independent live OTT service launching anytime soon.

    I really liked PSVue when I tried it out. IMO worked the best out of all the live OTT services.

    When it comes to costs tho PSVue is technically part of the PlayStation division and they probably thought the money they were spending on PSVue could be better spent elsewhere like on PS Now or other forms of cloud gaming.
     
  7. SledgeHammer

    SledgeHammer Icon

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    Sony owns a ton of content.
     
  8. espaeth

    espaeth AllStar

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    Escalator contracts for Sony were likely a big part of this, in particular all of the contracts they had to ink to get coverage for locals. They had over 500 local channels that were restricted to live-only viewing with network VOD only — they couldn’t find the leverage to get DVR rights. ( Features | FAQ | PlayStation™Vue )

    The other issue is they completely outsourced their content distribution for the streams to BAMTech. You know them as the company behind MLB.tv that Disney acquired a couple years ago. Maybe their renewal contract just came in substantially higher because that CDN division has some other major project coming up that could use that capacity....

    Speaking of...

    They already have thousands of subscribers, even though the service hasn’t launched. They offered 3 year subscriptions for $150 at the D23 conference, they offered 2 year promos for Disney VISA card holders and DVC members, and they’re now on to annual pass offers. When they launch, Disney Store employees (and presumably cast members in the shops at Disney World / Disneyland) will have lanyards with QR codes that will take people to sign up links.

    Just look at park attendance - you think those families will think twice about plunking down $69.99/year for all the Disney stuff on demand?
     
    Last edited: Oct 29, 2019
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  9. TV_Guy

    TV_Guy New Member

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    From a glass half full point of view those PSVue subscribers are going to go somewhere and I don't think it will be cable or satellite. Should give some outfits additional ad revenue and economies of scale.
     
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  10. techguy88

    techguy88 Well-Known Member

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    Sony does own a ton of content but Sony never used its various divisions to create synergies for PSVue like other companies has done for their streaming services. Some examples:
    • AT&T expanded Boomerang's reach on DirecTV and added CNN International. DirecTV's Audience network was expanded to AT&T TV, AT&T TV Now & U-Verse TV in linear & on-demand form. WatchTV has only the on-demand version of Audience. This alone provides AT&T's five video platforms with exclusive content you can't get anywhere else. Boomerang is also available through AT&T's own VRV streaming service.
      • PSVue never carried all 3 channels owned by Sony Pictures Entertainment and regulated Sony Movie Channel to its Elite and Ultra tiers.
    • Viacom utilizes its back catalog content with its free Pluto TV service to the extent they will create special channels to promote upcoming movies (like the Dora movie).
      • PSVue never did anything like this despite Sony having the content to do such things. A good example of a missed opportunity would have been an all day Spider-Man channel showing all Sony made Spider-Man films on a loop to promote Spider-Man: Far From Home.
    • AT&T utilizing its streaming service Crunchyroll's catalog for Adult Swim's anime programming
      • Sony Pictures owns 95% of Funimation but never utilized its content instead Funimation signed a first look deal with Hulu while promoting its own streaming service. Sony Music Entertainment Japan's Aniplex of America was using Sony Pictures' FunimationNow, Disney's Hulu and AT&T's Crunchyroll/VRV to stream its shows but nothing in the way of PlayStation Vue.
    Also PSVue never carried all 3 of Sony Pictures Entertainment linear channels:
    • Game Show Network (Sony Pictures Television 58% / WarnerMedia-AT&T 42%) is completely absent from PS Vue's lineup despite being available on competing services like AT&T TV Now (Grandfathered/higher priced packages), Sling TV, Philo & Frndly TV.
    • GetTV (Sony Pictures Television) is completely absent from PS Vue meanwhile other competing digital subchannel networks like Cozi TV, Stadium & StartTV are included in PS Vue's channel lineup.
    • Sony Movie Channel (Sony Pictures Television) is included on PS Vue but regulated to the higher, less advertised Elite and Ultra tiers.
    The rising costs of linear channels and their associated on-demand content is difficult for 1 Sony division to handle when they could spend that money on other things. PlayStation is about ready to launch new hardware in 2020 which it will take a hit on so most likely the PlayStation division doesn't have enough resources to keep spending on two things that will be considered "loss-leaders".

    Plus PlayStation is wanting to push its Netflix-like gaming service PS Now which for them can be more profitable than PS Vue because PlayStation is able to provide Sony-owned content to PS Now in the way of their exclusive, in house games for the PS2, PS3 & PS4 platforms.
     
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  11. techguy88

    techguy88 Well-Known Member

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    In the case of Disney + aside from all their movies that were released on home video its also pulling in content that hasn't been made available on home video or very rarely. Its got all the Disney Channel Original Movies & TV shows, Fox Kids Marvel animated shows, etc. So it will have a huge nostalgia factor as well. Those who are Disney nuts will pay for the service to catch its original movies and TV shows. Several people I know are getting it for the new Lady and the Tramp movie and the Marvel TV shows produced by Marvel Studios. Disney + has the IP to get and keep subs.

    Apple TV + is the most uncertain out of the bunch as it lacks the catalog IPs that Disney +, HBO Max and Peacock will have so its originals will need to be high quality stuff. However at its lower price point it can be positioned as a compliment to Netflix, Amazon Video, Hulu, Disney +, HBO Max and/or Peacock.

    Netflix will need to curb its debt at some point otherwise it will be hurting badly.
     
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  12. slice1900

    slice1900 Well-Known Member

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    There are 12 months in a year, so you need to divide your subscriber numbers by 12. Getting 50 million paying subscribers will be no problem at all - I'll bet they have that before Christmas next year. So that initial $3 billion will be paid off quickly, and they'll quickly blow by 50 million subscribers.
     
  13. SledgeHammer

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    Does any streaming service besides Netflix have that many? Yup, Disney will have the most popular content, but I'd be surprised if they ramp up that quickly. Even they are only predicting 82M by 2024.
     
    Last edited: Oct 30, 2019
  14. espaeth

    espaeth AllStar

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  15. Rich

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    Seems like Disney will have plenty of subs, doesn't it? Not "zero"?

    Rich
     
  16. lparsons21

    lparsons21 Hall Of Fame

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    Disney+ already has plenty of subs and it isn’t even lit up yet! Talk about great marketing!


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  17. B. Shoe

    B. Shoe Mentor

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    Some of these are/were bound to shut down at some point. If we're all considering streaming television still a fledgling market (which, it seems many still do), not every turtle that hatches out of an egg reaches the ocean safely.
     
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  18. SledgeHammer

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    It has PAYING subs? Or are you referring to people that signed up for pre-order? How many people pre-ordered it? I can't find any reports.
     
  19. SledgeHammer

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    I believe AP's numbers are for Amazon Prime proper, no? Not for the video since Amazon doesn't break that out and gives it out for "free". 96.5M is for Amazon Prime + Music + Video + Etc. I've seen numbers as low as 26M for people that actually use the video side. Most people just use it for the free shipping. I did see the 26M number earlier this year... and I like I said, Amazon doesn't break it out, so its really anyone's guess... but I'd guess its not 96.5M :).
     
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  20. lparsons21

    lparsons21 Hall Of Fame

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    Nope, not pre-orders. Disney had their special if you signed up for 3 years. When you did that sign up you paid on the spot. Hence, already subscribed.


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