Earlier quoted context omitted.
Netflix's move into creating content is specifically in response to cord cutters desires. Since they can't convince HBO to give them their content, they've decided to compete directly with HBO. Cord cutters are actually creating new content creators.
That may well be, but two responses: firstly, House of Cards, in particular, was exorbitantly expensive, and a huge gamble on Netflix's part that may or may not turn out to be sustainable in the long term. Second: Netflix is producing way less content than is available on cable. They produce less content than HBO, which is one cable channel among the hundreds that are currently available in the US. They'll never be a…
The Cord-Cutting Fantasy
41–50 of 62 posts
Re: The Cord-Cutting Fantasy
#42It may be true that splitting the price encourages us all to eat more, and pay less attention to price. That increases the demand for everything, and expensive options in particular (the lobster and filet mignon).
It's entirely possible that switching to a "pay-for-your-own-meal" model would reduce the amount of food people buy, and possibly even end with the expensive options being removed from the menu.
But our current situation isn't better for everyone--it's just better if you really like to eat, and especially if you really like to eat expensive things, because you'll be subsidized by the people who just get a salad.
Re: The Cord-Cutting Fantasy
#43"The truth is that the current TV system is a great deal for everyone." No, it isn't. I cut the cord, and watch media on Netflix & Hulu and buy 2-3 shows on iTunes. To get the same number of movies and series on TV I was paying for a $100+ per month cable bill. Now I'm paying $40 for internet and $8 for Netflix and about $6 per month from iTunes TV shows. So I get a better experience, can watch what I want when I wan…
I get cable AND Internet for $55/month (including espn and amc). People who claim cable is expensive seem to be unwilling to lessen their bill.
Meanwhile I get vDSL from the telco for $30. I do not and never have watched enough broadcast TV to justify almost tripling the price..
Re: The Cord-Cutting Fantasy
#44There's something odd about those numbers - if really _all_ of those channels, including ESPN, are too expensive to be financed by just their viewers at the current cost level, and each household would pay more for just the things they want... Where exactly does the money for those channels come from? The logical conclusion would be that large numbers of people never watch their cable TV at all and just subsidize ent…
Re: The Cord-Cutting Fantasy
#45Actually, it makes perfect sense for the viewers - the networks are the ones that it inconveniences. People simply won't pay the increasingly high rates which are borderline ridiculous. You could get a nice used car for the same monthly payment of some of these internet/cable bundles.
Re: The Cord-Cutting Fantasy
#46"The truth is that the current TV system is a great deal for everyone." No, it isn't. I cut the cord, and watch media on Netflix & Hulu and buy 2-3 shows on iTunes. To get the same number of movies and series on TV I was paying for a $100+ per month cable bill. Now I'm paying $40 for internet and $8 for Netflix and about $6 per month from iTunes TV shows. So I get a better experience, can watch what I want when I wan…
Re: The Cord-Cutting Fantasy
#47Re: The Cord-Cutting Fantasy
#481) Poor User Experience 2) Too much mind numbing content 3) Price 4) Ad(s)
Poor User Experience
While this isn’t true across the entire industry the few places I’ve lived have had terrible set-top-boxes. It has never made since to me that I am forced to use an interface that looks like it was designed in the late 90s. The guide is slow and has very few customization options. Direct TV did have a pretty good guide when I briefly had satellite which isn’t available in my apartment. Past Cable Companies: Longview Cable TV, Suddenlink, Grande Communications Link to horrid cable box that most of the providers I’ve subscribed to use. http://telecomlead.com/wp-content/uploads/2012/10/motorola-s...
Mind Numbing Content
I really don’t need to catch up on “Storage Wars: Texas”. After a long day, I found myself mindlessly scrolling through the guide and selecting some mindless show. I realize this there is other content available and I made the choice to watch the show. The point I am trying to make is that TV wasn’t contributing anything to my wellbeing. I’d much rather fire up a PC game and at least engage my brain while blowing off some steam. It feels wasteful to me to pay for 200+ channels and only utilize 3-5 I found myself watching less and less TV. I thought I would miss sports(ESPN) but I’ve found that I really don’t. It turns out that was just something I did to kill time. When I turn ESPN news is on @ a coffee shop, I realize how similar it is to CNN headline news. The newscaster regurgitates the same information in a new wrapper and explains why this is supposed to be “important”.
Price - Ads
Advertising was really the kicker. Commercials are so terrible. At the risk of sounding like a tinfoil hippie, I got tired of having the messages massaged into my head about why I need X new product to be a real man. Ford, lay off, I don’t care it is “Truck Month” again.
The experience of sitting down and watching TV has really gone downhill. I pay to use a poorly designed user interface which has the audacity to display Advertising on the guide. For me, I’ve never felt valued as a cable TV subscriber. So, I decided to cut it. Ad on the guide: http://imgur.com/wIctmj1
I still watch Comedy’s like New Girl, Mindy Project and The Big Bang Theory. I’ve purchased all three seasons of “The Walking Dead”. I purchase season passes via iTunes. Who cares if I don’t see it the day it comes out? The great thing is, I get to keep these shows and I watch them Ad free. That is a BIG plus in my book. I haven’t done the math to see if I am saving money but I feel that I am getting what I want with the money I do spend. I can take my apple TV to any house with internet an instantly access all of the media I’ve purchased. That is awesome. To me, it is worth it to pay a bit more to strip out all the ads and have the convenience of watching it on a ton of devices.
My point is I want to “reward” a company with money if they provide the features I am looking for, in this case Apple + the Studios. I want the cable industry to change into something that belongs in this decade, so I give them less money. (I say less because they do provide me cable internet which isn’t bad.)
The end of the ramblings
I am not sure if there is “theme” or point I was trying to make here. I am an ex-unhappy cable customer. I love consuming media, the distribution methods just need to be tweaked to something that makes more sense in this day and age. I understand the author is trying to say it isn’t economically viable to cut the cord because the current system is the best for everyone but I just don’t buy that. I refuse to believe that.
At any rate, thanks for writing the article, I enjoyed reading it but I hope you are wrong.
Re: The Cord-Cutting Fantasy
#49Earlier quoted context omitted.
Cord cutting sucks for people who like to watch live sports in the US. We've been cable free for a little over a year now and I've missed two sets of NBA playoffs. I chomp at the bit to watch playoff basketball for two months and finally get my fill when the Finals come and are put on a broadcast network (ABC). If I want to pay to watch the NBA playoffs without cable I can, I just have buy an NBA League Pass (which I…
Sports is how cable (and satellite) empires are built. Take, for example, the NFL Sunday Ticket on DirecTV. The NFL has sold exclusive rights, in the US at least, to DirecTV. Hardcore NFL fans, and there are a lot of us, wouldn't even consider cable, let alone cord cutting, until NFL Sunday Ticket is available through some other distribution network. The same is true in the UK for Premiership Soccer, and I'm sure it'…
It's currently about U$ 40 for the cable tv basic package, as there's a flaunted "oligo"(mono)poly here, which even managed to outlaw Carlos Slim's company - he doesn't care because Uruguay is not a relevant market.
Local football matches and European football drive a lot of cable packages, along with HBO and kids' shows and series (which are mostly available on Netflix).
Re: The Cord-Cutting Fantasy
#50"The truth is that the current TV system is a great deal for everyone." No, it isn't. I cut the cord, and watch media on Netflix & Hulu and buy 2-3 shows on iTunes. To get the same number of movies and series on TV I was paying for a $100+ per month cable bill. Now I'm paying $40 for internet and $8 for Netflix and about $6 per month from iTunes TV shows. So I get a better experience, can watch what I want when I wan…
At this point, though, there are too few people doing what you're doing to influence content creator behavior. Cable companies are probably making less per unit of content off of you than they are off of cable subscribers, but that's okay: the costs of making the content are essentially fixed, and are paid for mostly by cable subscribers. If they have to choose between getting dollars from you for content they've alr…
I would argue quite the opposite. If everyone switched to 'cord cutting' more content will be made for Netflix, Amazon, Hulu etc, maybe even pushed to all rather than exclusive deals.
"The truth is that the current TV system is a great deal for everyone." I partially agree with this statement. I would remove 'for everyone' here. Clearly for darkchasma, cord cutting was more cost effective. Personally, if ESPN was available online, I would cut the cord because there is nothing else I need from cable.
The OP clearly has the numbers incorrect (only looking at primetime data) but does have a point about a-la-carte prices being higher. However, the assumption here is all viewers are on cable or all are off it. However, with a gradual transition, the price will not have a drastic impact.
Lets assume that ESPN makes itself available online. You might see a flurry of cord-cutters flock to online-only mode but there will still be plenty left on cable. Between the two, ESPN will continue to hit the revenue numbers by refining the cost on each side.
I personally think that over time, the online model will follow cable where content providers will group channels to provide discounted programming.