Cord Shifting is Growing, Not Cord Cutting.
The third quarter numbers for Pay TV have come in and rumor has it that Pay TV has lost around a million subscribers in the third quarter itself. These rumors are actually spread by fanatic groups such as “TV is dead” who carry the notion that TV’s time has been long gone.
Although the stats may seem alarming to some, it only comes up to a mere 1% of Pay TV’s total subscribers.
The fanatics have also predicted that vMVPDs like Sling, DirecTV Now and Hulu will have gained around 900K subscribers, the same number of subscribers that Pay TV would have lost, give or take a few hundred. However, that just seems to be wishful thinking as of now.
You must consider the fact that buying Pay TV from Dish, AT&T and Comcast also counts as TV but you cannot label it as cord cutting. Agreed, the delivery mechanism is a Roku box rather than a regular set top box, but it is still basically the same thing.
It would make more sense to call this trend ‘Cord Shifting’ rather than ‘Cord Cutting’, as people are doing away with the unnecessarily expensive set-top box Pay TV system and moving on to reasonably priced OTT based services. They are shifting from MVPD to vMVPD.
However, if recent trends are anything to go by, then most MVPDs will soon launch their own vMPVDs as shown by Dish, AT&T and other distributors like Comcast, Verizon, Charter and Cox. This effectively means that you are eventually filling the pockets of the same people.
Hence, the worst case scenario for Pay TV would be to loose around 100K of its total subscriber count. This ultimately comes out to be a mere 0.1% of Pay TV’s subscriber count. A number so small, you could almost dismiss it as a rounding error.
This whole shift has various effects, some positive, and others not so much. One of such negative impact is that the profit margins on vMVPD systems are considerably less. This problem, however, can be easily solved if the MVPDs increase the prices for their broadband services.
They can easily sell the higher prices on account of the increased speed required to enjoy the OTT services. If all other things fail, there is always aggressive upselling that would help.
Moreover, the so-called ‘skinny’ bundles that you here of whenever you switch on the TV are hardly skinny in real life. They provide over 100 channels, covering all of your favorite ones. The ones that are missing, are hardly popular.
A positive impact would be that it would help people get what want no matter what the time. You could deliver more targeted and cross-screen advertising, offering bundles combining services such as Netflix, Amazon, Hulu and Youtube.
So the best course of action for an MVPD would be to focus on their vMVPD and ensuring that even if they are not the best out there, they are also not the worst one. Also, you must make sure that the services are fairly priced and must strike a good deal with major players such as Netflix, Amazon and other SVOD players.
Networks, or rather the big Networks can still breathe a sigh of relief. Although many people are unhappy, they are still haven’t given up on them.
Also as an advertiser, you must make sure that your advertisements run on OTT services along with the linear ones. You must make sure that you are a part of the future if you want to survive at all.
Facebook Introduces a Search Feature on Watch
Much like other tech giants in Silicon Valley, Facebook too relies on iterations. Whenever a V.10 of any product is launched, all the changes that are done or could be done, are done on the fly.
Well, Facebook’s new in-app short video platform, Watch, is no different.
When Watch was first launched in the summer, it did not have a search function. You could not find any video without going out through Google first. Even then you would be lucky if you actually got it. Also the videos you watched disappeared almost instantly from your feed and were lost forever.
Now, the good news is that Facebook has finally come to its senses and has introduced a workable search function and it greatly improves your overall experience on Watch.
If this seems trivial to you, it is because you do not understand the volatile nature of today’s users. There are so many similar kind of platforms out there, that if a particular platform doesn’t suit one the first time they visit it, chances are that the person would never return to the same platform ever again. Why should they, when there are a million other options offering the same thing? So, making a good first impression is of supreme importance.
However, Facebook paid very little attention to actually promoting Watch, so many people do not have a clear idea as to what it actually is. This is good for Facebook. Nobody could say for sure whether it was intentional or not.
Some people are speculating that Facebook had been tied up with other issues and that they did not have the time to promote Watch, which is why they had been scrappy in their first attempt. Another view is that as they were scrappy before, they did not wish to promote it wholeheartedly.
Perhaps we would never know what the actual situations were and would have to be content with mere speculation. However, everything seems to be going well for them now.
Network or MVPDs should think about Facebook and be wary of it when they launch their TV product because when they do, it would surely put up a fight against the Networks or MVPDs, although nobody is sure as to how long that could actually take.
Advertisers would be wise if they start paying close attention to Watch as soon as they can.
Purchase a Highline TV antenna
Last but not least, you can think about purchasing a Highline TV antenna. You are encouraged to keep this as your last resort, as you will have no hassle installation with a small out of pocket investment for a Highline TV antenna for Free TV. You need to keep in mind that around 90% of the television stations are broadcasting their signals over UHF band. However, an indoor antenna may not be able to deliver the best possible results to you with capturing a VHF television channels.