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Fox challenges cord-cutters by sticking TV shows behind paywall

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Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#3
Well, back to The Pirate Bay. Seriously, what did they expect? If the pirates are providing a superior product (generally better encoding) and more convenience, then the pirates will win. Fox at least had something to offer when they let you stream the shows the day after. That at least improved the convenience part, because you don't have to wait for the download. But an 8-day wait is just throwing money away.

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#4
post #2

I find this strange in that if you have someone watching online you can make sure they watch the ads. Isn't that what they want?

Cable/satellite providers pay the networks for the right to carry their channels. They could find this revenue stream thinning out if the cable/satellite companies can prove that less people are watching via cable/satellite (and they probably can since, by and large, the cable companies also provide Internet service).

You are right though, instead of being worried about the old revenue streams, they should find a way to maximize their profit from cord cutters, and maybe this is what they came up with...

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#5
At first glance, this seems strange. Fox is a broadcast network (ad supported) that one doesn't need to subscribe to in order to receive.

However, broadcast channels do make money through re-transmission rights that they sell to cable and satellite carriers. It might seem silly that your cable company is paying Fox for programming you can already get over the air, but the cable company also knows that their service won't be as attractive to you if the don't also carry your local channels without the need for an antenna. By confirming that you subscribe to Comcast, DISH Network, or something else, they know that they're receiving more revenue than just ads from you - they're also getting the re-transmission fees from your paid service.

There can also be the perception that if you're paying for TV, you're likely to watch it sometimes even if you use the internet TV for some of your TV watching. I'm guessing Hulu isn't getting advertisers to shell out as much money as traditional TV is right now. So, if you subscribe to cable or satellite, they might not be making a lot on what you're watching on Hulu, but at least they know you're more likely to be watching programming that they do get better money off of.

I'm definitely not defending the move and I don't subscribe to pay-TV myself, but I can understand why they'd make the move. Subscribers to pay-TV bring them revenues directly through the re-transmission fees and indirectly through a greater likelihood of watching non-internet programming with more ad slots that pay higher. If "cutting the cord" becomes the norm, it could mean lower margins and greater competition in programming for Fox and others. That's good for consumers, but I can see why Fox would try to stop that.

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#6
post #3

Well, back to The Pirate Bay. Seriously, what did they expect? If the pirates are providing a superior product (generally better encoding) and more convenience, then the pirates will win. Fox at least had something to offer when they let you stream the shows the day after. That at least improved the convenience part, because you don't have to wait for the download. But an 8-day wait is just throwing money away.

The 8-day wait is for free streaming options, so it's not throwing money away. If you subscribe to Hulu+ you can still get shows the next day.

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#7
post #5

At first glance, this seems strange. Fox is a broadcast network (ad supported) that one doesn't need to subscribe to in order to receive. However, broadcast channels do make money through re-transmission rights that they sell to cable and satellite carriers. It might seem silly that your cable company is paying Fox for programming you can already get over the air, but the cable company also knows that their service w…

However, broadcast channels do make money through re-transmission rights that they sell to cable and satellite carriers.

Hmm, but I think it's the local stations that make money on retransmission fees, not the networks. Though this is complicated by the fact that local stations are in some markets (though by no means all of them) owned by the networks.

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#8
post #6
post #3

Well, back to The Pirate Bay. Seriously, what did they expect? If the pirates are providing a superior product (generally better encoding) and more convenience, then the pirates will win. Fox at least had something to offer when they let you stream the shows the day after. That at least improved the convenience part, because you don't have to wait for the download. But an 8-day wait is just throwing money away.

The 8-day wait is for free streaming options, so it's not throwing money away. If you subscribe to Hulu+ you can still get shows the next day.

The free streaming options still get some money from ads. TPB doesn't. (Another reason TPB's product is better.)

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#9
> Those who enjoy Fox shows such as Family Guy, Glee, or The Simpsons will soon have to wait an extra eight days if they want to watch new episodes online

Oh, no, not a whole eight days! I'll literally be a full week behind the latest pop culture phenomenae!

Re: Fox challenges cord-cutters by sticking TV shows behind paywall

#10
>>Fox's president of affiliate sales Mike Hopkins told the Wall Street Journal. "If this works, you're going to see a lot more content online."

And if this doesn't work, you're going to see a lot more content online. These companies just don't get it. It has less to do with money, and more to do with ease of viewing. If I want to watch Family Guy or Glee the day after it airs, I will google "family guy episodes online free" and find plenty of free options. Or I will go to torrent sites. Fox just lost me as a customer. I gladly watch the shows legally on Hulu when that's the easiest way.

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