Streaming TV can never be as simple or cheap as it is now


Streaming TV can never be as simple or affordable as it is now.

Disney and Warmedia are each launching their own streaming services in 2019 in a challenge to Netflix's dominance. Netflix viewers will not be able to watch such movies Black panther Or MoanaThey will soon reside on Disney's subscription service. WarnerMedia, a camera of AT&T, will soon be serving its own library of blockbuster films and HBO series.

Families will have to decide between paying more each month or losing access to some of their favorite drama, comedies, musical and action flicks.

"There's definitely a lot of change coming," said Paul Verna at Emarketer, a digital research firm. "People will have more choices from that river, but at the same time the market is already fragmented and intimidating, and it's just going to get more."

Netflix viewers will not be able to watch movies such as Black Panther or Mana, which will soon reside on Disney's subscription service. (Matt Kennedy / Marvel Studios-Disney by the Associated Press)

Medical companies are looking to capitalize on the popularity and profitability of streaming. But by fragmenting the market, they are also narrowing the line, which once marked the rise of Internet-based video. About 55 percent of the US. There. Households subscribe to paid streaming video services, up to just 10 percent in 2009, according to the research firm Deloitte.

Just like Netflix, Hulu and Amazon Prime, people tried to "cut the cord" through the cancellation of traditional cable TV packages, the newer services are looking for the more inclusive options.

Disney Plus, Waremedia and others set to launch

The Disney Plus is set to launch next year's new Marvel and Star Wars programming along with its animated and live-action movies and shows. It didn't show any cost yet, but Disney CEO Bob Yger said in an August call with analysts that it would probably be less than Netflix, which runs $ 8 to $ 14. There. A month, since its library will be smaller.

AT&T plans a three-door award from Waremedia, with a new and library content centered around the existing HBO streaming app. No word on pricing yet.

Individual channels, such as Fox, ESPN, CBS and Showtime, are also included in the act. Research group TDG predicts that every major TV network will launch a direct-to-consumer streaming service in the next five years.

Netflix and others have invested heavily in original movies and TV shows to keep their customers loyal. Netflix, for example, said Wednesday that 45 million subscription accounts worldwide saw Sandra Bullock thriller Bird Box During its first seven days of service, the biggest first-week success of any movie made it a nearly 12-year-old streaming service.

Netflix has 45 million subscriber accounts worldwide, watched Sandra Bullock's thriller bear box during his first seven days of service, the biggest first-week success of any movie making for nearly 12-year-old streaming service. (Merrick Morton / Netflix by the Associated Press)

That first-week audience contains a third of 137 million subscribers from Netflix watched the movie. December 21 – December 27 – A holiday season stretch when many people are not working and have more free time.

But Netflix, Hulu and others will soon have to do without programs and movies licensed from their very soon-to-be rivals. In December, Netflix paid a reported $ 100 million to continue licensing Friend From WarnerMedia.

Date and dollars

Why are media companies looking to get in? Date and dollars. Sure, they get money when they sell their programs to other services like Netflix. But starting their own service allows networks and studios to access valuable data about binging on their shows.

For services with ad-based options, that data translates into more dollars from advertisers. And services that rely solely on subscription revenues, media companies can use data to better tailor their offerings to individual tastes, help attract more subscribers.

To get a complete set of programming, TV watchers may soon have to subscribe to some of the services of just Netflix, Hulu and Amazon Prime. (Then Goodman / The Associated Press)

"I think all media companies are coming to grips with the fact that you better represent a relationship directly with your audience," said AT&T CEO Randall Stephenson at an analyst conference earlier this month.

The business model that some networks and content companies are currently using, distributing their TV shows and movies only by licensing them to streaming platforms, is getting "disrupted aggressively" as more companies launch their own services, said Stephenson, whose company bought Warmedia in June. .

Forrester analyst Jim Nail compares this moment to the "Cambrian explosion," a historic era when plant and animal species rapidly multiplied after ice age glaciers receded.

"Great brands like Disney have to appreciate: are we just going to access the market by licensing our content to Netflix, Hulu and others?" He said. "Or can we go to the consumer with our own service?"

But a multiplicity of streaming services can easily overwhelm or confuse consumers. To get a complete set of programming, TV watchers may soon have to subscribe to some services instead of just one or two.

Tired services become more commonplace

Among the options will be services such as Netflix and Hulu that offer a wide range of video from a variety of sources; Cable-like "Skinny bundles" such as Fubotv, Slings and YouTube TVs offer a variety of live channels; And channel or net-specific services like Disney Plus.

Consider AT & T's plan to start a three-tier service center in HBO. An entry-level package will offer mostly movies; Second, a little more expensive queue will include original programming and newer movies. A third, and even more expensive proposal, would include more entertainment such as Waremedia Friend.

In December, Netflix paid a reported $ 100 million US dollars. There. To continue licensing the TV sitcom friends of Varmermedia. (Warner Bros./Canadian Press)

The cost of multiple streaming services can quickly upgrade the average cost of a cable bill – not the cost of Internet service. That's about $ 107 a month, according to Leichtman Research Group.

"It is unlikely that any of these services can charge more than $ 10 a month," Forester said. "The great unknown is how many individual streaming services people are willing to sign up."

Cable-like "Skinny bundles" such as Fubotv, Sling and YouTube TV offer a variety of live channels. (Reid Saxon / The Associated Press)

Companies are already trying to curb this chaos by bundling multiple streaming services together. Amazon's major customers can add-on subscriptions to HBO, showtime, or starry. Roku and Chromecast viewers can access very different services from a central location; Roku says Wednesday it will start selling in-app access to Showtime, Starz and other channels as well.

How should consumers deal with all the coming change?

"Be patient," said Michael Greenon, president of the TDG research group. "We are in a period of dramatic change for the TV and video business. There will be great benefits and market and conflict."

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