Services like Amazon and Netflix

Discussion in 'DIRECTV General Discussion' started by TDK1044, Jun 6, 2017.

  1. Jun 6, 2017 #1 of 59
    TDK1044

    TDK1044 Godfather

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    So, for those more knowledgeable than me, and that's just about everyone here, do you guys think that DirecTV will keep up with the streaming offerings from companies like Amazon, Netflix etc by adding one or more of those services on DirecTV? With some new shows now being made as Amazon or Netflix originals, do you think that D* is banking on customers accessing those services separately on smart TVs, in addition to paying for a service like D*? Or do you think that D* will do a carriage license deal to carry one or more of those services? Just curious as to the consensus thought here. Thanks.
     
  2. Jun 6, 2017 #2 of 59
    P Smith

    P Smith Mr. FixAnything

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    you are far from reality if you think our thinking would change something in DTV business ;)
     
  3. Jun 6, 2017 #3 of 59
    Brian Hanasky

    Brian Hanasky Godfather

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    I know Comcast has integrated Netflix into some of their systems (X1 system I believe) but I don't expect Directv to follow. Cord cutting is a real thing and is/will become a significant issue to cable and satellite providers. People are using Netflix, Hulu, Amazon, and Sling/PS Vue/Hulu Live/Directv Now as cable/satellite replacements. As much as Directv likes fees (I'm looking at you $10 HD fee) I imagine if they would consider Netflix integration that would be another fee and I think that most people would say NO to another fee.
     
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  4. Jun 6, 2017 #4 of 59
    TDK1044

    TDK1044 Godfather

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    But won't they have to offer integration to survive, Brian? Otherwise, won't people simply pay individually for Hulu, Amazon etc and still end up with a much lower bill than DirecTV?
     
  5. Jun 6, 2017 #5 of 59
    Brian Hanasky

    Brian Hanasky Godfather

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    I don't expect traditional cable/satellite to survive. I am tired of the fees; $10 for HD is 2017 is ridiculous. I use Netflix, Amazon Prime, and Hulu. I also am using Sling and have dropped Directv down to the lowest package. Contract up in September. After 13 years I probably will be out.
     
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  6. Jun 6, 2017 #6 of 59
    mjwagner

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    Unless you don't have access to high speed reasonably priced Internet service there is no reason to go thru DTV for services like Netflix or Amazon. There are also technical issues involved as these services require two way communication. That said, I do think DTV has to start doing something before the trickle turns into a flood. I'm a good example. I was with DTV for a LONG time (started with them before they were even DTV when you had to install all of your own equipment) but switched to PSVue last year and could not be happier, and I'm saving over $80 per month and have access on all my TV's instead of just a few. The OTT providers will continue to put pressure on DTV, and Dish and the cable cos.
     
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  7. Jun 6, 2017 #7 of 59
    TDK1044

    TDK1044 Godfather

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    These points all make sense. So if you're DirecTV, and you've spent lord knows how many millions of Dollars launching satellites, how do you prevent yourself going the same way as Blockbuster five years from now?
     
  8. Jun 6, 2017 #8 of 59
    Brian Hanasky

    Brian Hanasky Godfather

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    Not sure. I know people are tired of fees. I used to have 4 TV's connected to Directv. So that's $8 per box ($24 total) excluding the first box. Funny but the first box I disconnected was my daughters who approached me and told me to take it out because all she was using was Netflix, Hulu, and Youtube on her Xbox.

    As far as fees it's silly. In addition to the box fees there is the $10 HD fee (at least they don't charge me for color television). Then the $10 DVR fee and if you have a package above a certain level there is the approximately $8 regional sports. Next comes the whole home fee for $3. My most recent bill (xtra package with 2 DVR's) had approximately $40 in fees.

    I can watch almost every major network show the day after it airs on Hulu which is about $12 a month for the no commercials plan. Netflix is $12 a month and if you break it down monthly Amazon Prime is about $10 a month.
     
  9. Jun 6, 2017 #9 of 59
    Rich

    Rich DBSTalk Club DBSTalk Club

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    I thought about dropping D* too. I don't use it for anything but sports and CNN. Can't seem to cut the cord tho.

    Rich
     
  10. Rich

    Rich DBSTalk Club DBSTalk Club

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    By desperately lauding D* Now?

    Rich
     
  11. TDK1044

    TDK1044 Godfather

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    Yeah, I think that they will have to radically rethink their business model. If they continue to nickle and dime their customers with absurd fees, they will be out of business in under five years I feel. It seems to me that what they could potentially offer is 'one box supplies all' solution that doesn't involve potential issues with streaming, depending on how may users at a property are simultaneously trying to access high speed internet for multiple purposes.
     
  12. Brian Hanasky

    Brian Hanasky Godfather

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    Yea I noticed that Directv Now is popping up as soon as I go to Directv's website. Problem is without a DVR it's going to lag behind Sling, PS Vue, Hulu Live, and to some extent Youtube TV (limited area of availability).
     
  13. peds48

    peds48 Genius.

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    The way I see it and you don't get DIRECTV get watch Netflix. So you probably have another way to access Netflix if you subscribe to that service. Integrating Netflix to DIRECTV may push a customer to lower their packages so I see no way DIRECTV will integrate these services.


    Sent from my iPhone using Tapatalk
     
  14. James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    By providing a service that cannot be easily and cheaply replaced.

    Right now satellite wins by providing content not available via streaming services. A lot of content that can be streamed is restricted to traditional cable/satellite subscription. And satellite serves people who cannot get inexpensive internet service (which is required for streaming to succeed).

    As programers begin to lose money on subscriptions via cable/satellite they will be more open to stream subscriptions. But the concept of packaged channels lives on with Sling TV and DIRECTV Now.

    Even with Amazon and Netflix people pay for content they will never watch. It is all part of the package.

    Five years from now satellite will still be alive and serving an audience. The only way to pay less is to watch less. Give up content.
     
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  15. slice1900

    slice1900 Well-Known Member

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    I think right now is the golden age of streaming, and networks are accepting less money for their content (most offering it free on their web site after X number of days) and lots of competition keeping the markup a lot smaller for streaming providers like Sling and Directv Now.

    When the networks start losing money because they have fewer customers watching over cable/satellite and more over streaming providers who pay them less, they'll demand more money when renewal times rolls around. When they start see millions of people watching their content for free via their web site, they'll require subscriptions to do that, at least for popular shows.

    I don't expect streaming to be as cheap compared to cable/satellite in 5-10 years as it is now. Prices for streaming content are going to go up, unless you think all the networks are just going to roll over and accept far less revenue than they have now. No company willingly surrenders billions without a fight.
     
  16. mjwagner

    mjwagner Icon

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    Since this is all conjecture about the future none of us really know the answer. Time will certainly tell. But, content providers do not have to accept less revenue for our individual bills for service to come down. DTV already has profit margin built into just the package fee. The majority of my savings switching from DTV to PSVue is coming from not having to pay all the added fees (HD fee, whole home, DVR fee, extra receiver fee, etc.). The OTT providers simply do not have the same cost structure to pay for as the sat providers do so they can pass those reduced costs onto their subscribers in the form of lower overall monthly cost and no long term commitments. IMHO, the days of $100+ sat/cable bills are coming to an end. Of course for both sides of this discussion it is all conjecture and opinion. I don't think it is going to take 5-10 years to prove who is right. I think it will be more like 3-4...so we can all come back then and see who is right...
     
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  17. mjwagner

    mjwagner Icon

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    As to your last two sentences, I'm sure for some that is true. In my case I actually am now paying less, have access to all the same shows I was watching before, have improved DVR capability (virtually unlimited storage and no conflicts to worry about or manage), have the ability to watch on all my screens rather than just some, and am watching more than I did when I was using DTV. Of course everyone's viewing habits are different, maybe I'm just a special case...
     
  18. mjwagner

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    It is exactly why they released DirecTV Now. If they add cloud DVR capability and increase the simultaneous streams (I need more than 2 but not necessarily 5 like PSVue has) I might try the service again. They are certainly not stupid and see the writing on the wall.
     
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  19. James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    OTT providers have their own problems. Every added customer costs them more money before paying for the content that they are providing. The satellite providers install and support a dish and receivers for each customer. Hundreds of dollars worth of equipment that is paid for by fees and commitment. But the transmission costs do not go up for every subscriber added.

    OTT has to buy space on a CDN (or build their own Content Delivery Network) for every program that they offer. OTT has to pay bandwidth for that content to leave the CDN. Some deals may be worked out where the content is stored and delivered from the content owner's CDN but there is a non-zero cost that increases based on the amount of content provided. Having one season of a show available costs less than having ten seasons of a show available. And the more popular their service becomes the more bandwidth their customers will consume.

    Satellites may seem expensive but they are a very efficient way of sending one signal once to millions of subscribers at the same time. Hundreds of channels available without routing packets to individual customers. Thousands of channels if one considers locals transmitted via satellite. Adding a subscriber is just sharing the signal with the next customer.
     
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  20. mjwagner

    mjwagner Icon

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    I didn't say the OTT providers have no costs. I said they have a different cost structure then the sat providers, and it is less.
     

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