Disney's Deal With Dish Network Reveals Why Cable Companies Are Terrified Of Online Streaming Servic

Discussion in 'General DISH™ Discussion' started by Athlon646464, Sep 29, 2014.

  1. Athlon646464

    Athlon646464 Yada Yada Yada DBSTalk Gold Club

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    Disney's Deal With Dish Network Reveals Why Cable Companies Are Terrified Of Online Streaming Services

    (businessinsider.com) - The Information’s Martin Peers wrote an interesting column on Thursday arguing traditional media companies are simply denying how online streaming services, like Netflix and Amazon, are disrupting the $100 billion-plus TV network industry.

    To be sure, programmers are taking steps to limit erosion in their deals with Dish. One industry executive says the Disney agreement with Dish has a provision that if the streaming service signs up more than a certain number of subscribers, the deal is off. Dish declined to comment.

    In other words, Disney will play along with Dish Network's new service, but if it succeeds to a certain extent, they will be forced to pull out — likely to honor their partnerships with longstanding cable providers like Time Warner and Comcast.


    Peers offers two potential reasons for why big media companies like Time Warner are downplaying streaming and other disruptive services:

    "The simple answer is that most media company CEOs are nearing the end of their careers and are more focused on short-term quarterly performance than trends that might or might not happen for a decade. Another answer is that they’re in denial about the implications of what they’re doing."


    Full Story Here

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  2. mwdxer

    mwdxer Well-Known Member

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    Streaming is the future. More and more channels are showing up on devices like the Roku. All of the TV services will change in time or they will be left behind. My neighbor recently dropped cable and put up an antenna to get the local translators. He told me that the price of cable was getting way too expensive for what he watches. He can stream most of what he watched on cable for free. Another friend has the antenna up for local translators that offers (ABC,NBC,CBS,FOX, PBS, and MYTV) and he subs to Netflix to get the movies he wants and other entertainment like on You Tube for free. I have read that some of the more adventurous TV services like Showtime and HBO are looking into selling their service without having to sup to cable or satellite. I am running into more and more people that streams everything they watch. With the advent of new smart TV's, cable or satellite is not needed. The teenagers I know stream everything. They could care less about OTA TV or Cable. They get You Tube and Netflix.
     
  3. mwdxer

    mwdxer Well-Known Member

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    One other thing I forgot to add that Dish is looking into a streaming service in 2015. There is one big advanage streaming, no equipment to deal with out in the weather. No satellite receivers to fail, no dishes getting out of alignment or LNBF failing.
     
  4. inkahauts

    inkahauts Well-Known Member

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    Um, weather can affect streaming even more than satellite, because when cables go down it takes a lot more to get them back up, where as with a dish, you just wait for the clouds to go by, and reset the dish, you aren't in a long chain of issues with satellite. And of course there's still boxes that can fail, even if its the tv itself...
     
  5. damondlt

    damondlt New Member

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    I haven't had a Internet outage in 3 years.
    I'd say it's fairly reliable.
    And I live in an area that has heavy snow and lots of ice damage annually.
    I've replaced, a Swm16, 3lnb, 2 HR24s in that same time.
     
  6. tsmacro

    tsmacro Hall Of Fame

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    As streaming becomes more popular it'll become more expensive so a lot of the appeal start to lose it's luster and oh yeah all that free stuff will start to disappear too. There's no way the companies that own the studios that produce the shows and movies will allow for a major reduction in revenue, they can't afford it and stay in business. Plus people seem to need to be reminded on a regular basis that there's many areas of this country where the available "high speed" internet isn't up to bandwidth and speed requirements of streaming all their entertainment. So whenever I see people talking about how "soon everyone will be streaming everything for free or at least so much cheaper than what we pay for tv now" I just have to roll my eyes and chuckle. I suppose it's possible that one day we could get to that point, but it would take a major investment in infrastructure to make it happen and there doesn't seem to be anyone even talking about doing such a thing let alone even working on it.
     
  7. Wilf

    Wilf Legend

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    There are now more folks with broadband than cable/satellite TV was recently reported in the news. Netflix streaming has been around for 4 or 5 years and has expanded to Europe. Yes, there has been a price increase - $8 to $9 - the first in five years. How does that compare to the increase in your Dish Bill for five years?
     
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  8. tsmacro

    tsmacro Hall Of Fame

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    Yes there's more people with "broadband" with the quality of that service varying greatly, believe me when I tell you for many people, that attempting to meet their needs via streaming with that so called broadband doesn't work out so well. At this point we don't even have the bandwidth available in most major cities, let alone if you are anywhere else, to handle what would be necessary if the primary source of our entertainment was via streaming, like I said we'd be needing a major infrastructure upgrade to get there. Also yes the price of Netflix hasn't gone up much yet, but as more and more people "cut the cord" the entertainment companies will start demanding more revenue from Netflix and their like. I mean you really don't think these companies are just going accept a cut in revenue just because people don't want to pay for cable and/or satellite do you? And where do you think they'll look to make up for that lost revenue?
     
  9. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    And the cost of content will rise for those providing streaming services, forcing rates upward on Netflix and others. And kids who are just starting out and ok with watching stuff on their iPhones will grow up and have real houses and real TVs. Not all, of course, but enough to assure that the TV market will continue in force, even against the erosion caused by streaming.
     
  10. Wilf

    Wilf Legend

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    "in most major cities"? I would like to see a citation for that statement. Note that Youtube dwarfs Netflix.
     
  11. Gloria_Chavez

    Gloria_Chavez Godfather

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    I believe you're wrong to assume that the pie will continue to grow. The music recording industry in the US is 55% smaller than it was twelve years ago. And in 2002, if you looked at revenue projections, the CFOs of music companies thought sales would be 150% higher by 2014.

    I know a few very affluent families that have large TVs, but no PayTv account. Kids? Netflix and Amazon have more than enough content. And PBS Kids is also available. Sports? The Stanford (Fear the Tree!!!)/Notre Dame game is on NBC this weekend.

    Hard core sports fans may indeed have to go the PayTv route.

    But if you are not a hard-core sports fanatic, there is no compelling reason to pay for PayTv.
     
  12. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    We disagree, then. Even if I didn't like sports, I have many reasons to have pay TV.

    And to clarify, I didn't indicate the pie will grow, but that it will remain a force. The kids I mentioned will grow up and tastes will mature- or not. (Not talking about programming for kids).
     
  13. tsmacro

    tsmacro Hall Of Fame

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    Ok imagine everyone in a metropolitan area streaming everything in HD to their TV's in the same volume as they watch tv now. I'd be surprised if there's any city in the USA right now that could handle that volume. I read something recently where the CEO of Netflix Reed Hastings said he felt that the right connection for someone to have for the future of streaming video was at 50 megabits, considering the average in America is now 7.4 (and if that's average that tells you half of it is below even that) there's a lot of work to be done.
     
  14. Wilf

    Wilf Legend

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    You are assuming that broadband networks will not grow to meet the demand, an assumption I cannot agree with. BTW, I live in an Maryland Eastern Shore community that might be described as East Coast Rural (surrounded by fields of corn, soybean, and winter wheat), and my broadband is advertised as 75 Mbps down and 5 Mbps up. The 75 figure sometime happens, and it is always well above 50 Mbps. I agree that the US is way behind other developed countries (about 20th I believe), and it is embarrassing that countries like S. Korea and Latvia have faster and cheaper broadband than we do.
     
  15. APB101

    APB101 Icon

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    Aren't we [the United States] behind other countries on the infrastructure with delivering high-speed Internet? (That there other countries more advanced on the levels of speed?) And that we are paying too much (compared to what others pay) for high-speed Internet (for what we are actually getting)?

    Your points about profit are important. ESPN is chief among a group of programmers who love the current structure of retransmission. No matter how, specifically, the programming is delivered…a giant like ESPN will make sure it always gets more than its piece of the entire pie.
     
  16. tsmacro

    tsmacro Hall Of Fame

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    I'm not assuming any such thing, I'm just pointing out how far away we away from being able to be stream all our entertainment on a national level. You are obviously very fortunate where you live, most rural areas don't even get anything close to what's available to you, hence the national average of 7.4Mbps. As you pointed out we're way behind most the civilized world (and parts not so civilized) and we don't seem to be in a big hurry to catch up and as such streaming our entertainment in any large amounts will be confined to the regions lucky enough to live where the investment has been made. Eventually we'll probably get there but at this point it's progressing very slowly.
     
  17. lee635

    lee635 Hall Of Fame

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    You know cable and satellite could compete much better if they weren't soooo greedy, for example pay-per-view charges. PPV goes up against the redboxes of the world. Why can you go to redbox and rent the disc for a dollar, but PPV is $4+? :(

    Bandwidth: I'm less concerned about the bandwidth issue. A simple innovation will be as more folks buy these aftermarket boxes with big hard drives, then the movies can be scheduled to stream down during off hours. Folks will queue up shows and ip multicasting will periodically send out feeds which can reduce much of the multiple feed traffic. Also, a bank of local servers in every big city can serve up netflix/amazon/hulu to all the residents of that city without adding to long haul internet traffic. We heard this same sort of F.U.D. years back when local to local was starting on satelitte -- Guess what -- They figured out local to local and as more people sign up for streaming, they'll figure that one out too.

    Another innovation that needs to happen to keep cable/satellite relavant is more ubiquitous access on all your devices. E* at least has an online library of movies and shows. However, where is the new E* box that includes a wireless node so that you can access your programming at home on your TV or your Ipod or your kindle or your smartphone? Remember folks aren't cancelling cable/satellite just because of price (although that is certainly one reason), but also because they don't want to be limited to watching shows on "the TV in the den". They want to watch on their ipad, tablet, smartphone, kindle, etc. Cable/satellite has some limited options that are way too complicated and too "boutique" in their orientation. We need boxes that are super easy to connect to with your phone/pad/laptop.

    Thanks for all the great discussions!
     
  18. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Forget about all the technical reasons why streaming is farther away from becoming "the" thing than a lot of people seem to think.

    I don't know why it keeps being ignored that the cost is low for streaming right now because it is a supplementary source of income for the studios. They are making money from pay providers, so they don't need to charge as much for secondary markets like streaming... but if the market shifts and people go away from pay TV and more to streaming... you will not be able to blink faster than they will change the pricing structure.

    In fact... IF streaming does prove to be popular... I could see a crossover time where streaming will be more expensive than pay-TV until pay-TV dies completely... I don't know why people want pay-TV to fail so much... because it's not like they will continue to get free/cheap streaming if that happens.

    People love to bring up the "I pay for channels I don't watch" argument... but the other unspoken truth is... Pay-TV customers are ALL paying for your free/cheap streaming to exist too! So we are subsidizing that... I would love to see IF studios/networks adopted an equitable pay and charged for streaming the same as they do for Pay-TV and treated them as "equal outlets"... how many people would love their streaming then.

    Music, as has been an example, has been moving away from physical CDs and to online sales... but did the price of music go down?
     
  19. joshjr

    joshjr Hall Of Fame

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    Not to mention we will see increased pricing for internet itself. Alot of providers already have caps. I know one month this summer we used over 450 gigs of data in one month. If I had a provider that actually changed for that data, it would have been a crazy bill. I think you are right, the price will just adjust to somewhere else. I for one am a happy pay tv subscriber and plan to be for the foreseeable future.
     
  20. damondlt

    damondlt New Member

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    What on earth do you download?
    I have a family of 4 , and tablets , laptops, smartphones and never even touched 200 GB
    I think 187 was my max month, and that was when I downloaded the entire Sopranos seasons on my Genie.
     

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