YouTube announced today it is getting into the TV market. YouTube TV will compete with Sling TV and Playstation Vue as over-the-top competitors to cable. The service will charge $35/month for several top cable networks and unlike its competitors will have a cloud-based DVR without storage limits. It is expected to launch in a few months.
Hulu reportedly will get into the market later this year and launch its own subscription service. My guess is Amazon and Netflix, and maybe Facebook aren’t far behind. Twitter has been experimenting with this as well, most notably with the NFL Thursday night simulcasts last fall.
I’ve mentioned this several times but this all is important to college sports because it threatens the current business model in which conferences are paid heftily by cable companies for exclusive access rights, but those cable companies are losing subscription fees from cable and satellite. The more ESPN and FS1 pay the college conferences, the more coaches’ salaries increase, facilities are built or renovated, etc. But ESPN has lost in excess of 12 million subscribers in the past few years. At $6.65 per month, per subscriber - plus associated bundling - that adds up to a pretty sizable loss in potential revenue, which may trickle down to broadcast rights agreements at some point. I don’t think that will be any time soon, but an accumulation of announcements like today’s eventually could arrive there.
On a related note, my wife and I made the decision to cut the cord this week. I’m keeping cable through the weekend to be able to watch the Razorback baseball games that are out of town, then taking the cable box into the office next Monday. We just don’t watch TV enough to justify the expense of it all and with the proliferation of OTT viewing options, like the new YouTube service, we’re comfortable knowing that we won’t miss anything we really want to see.
Matt: It is obvious that you didn’t have a teenage daughter in the house to veto that move. I live in metro NYC. I tried to switch from my cable provider, Cablevision, to ATT so I could get the SEC Network. Cablevision (NYC and metro) is the only cable provider in the country that didn’t pick up the SEC Network. My teenage daughter started crying - all of her apps are tied into the cable provider. She said her life would be ruined. I subscribe to Sling TV ($30/month) for the sole purpose of getting the SEC Network. Even at that, I cannot get SEC+, so I still miss out on a good bit of Hog action.
We won’t be far behind you Matt. We have watched much more Netflix of late. Just don’t watch the regular TV shows that much. I am at most Razorback games (except road hoops and baseball), but this can be solved as you have discovered. The cable companies better change the options. I’ve always thought it should be a daily menu and you pay for what you use. Obviously, they think they’ll lose money if they do this, but I think they will come around eventually.
It has always amazed me how “Legacy” companies in an industry can fail to see the writing on the wall. Consumers have been clamoring for ala cart cable service since the early eighties, but the cable companies would not budge. They could be dominating the streaming market right now and/or there would be no streaming services if they had been willingly to have some vision.
I’m going to watch the hogs period. But they have added a nes channel that cost more again. Sec +. The SEC Alt channels very rarely works. It all stinks out in the country. When I get to old to watch my hogs I’ll just get rid of TV all together.
Go sit under a shade tree by the garden.
The sling TV my aunt just got was $20 a month and ESPN and ESPN2.
I’m keeping mine but it’s too high.
Coaches may end up having to take some pay cuts if the revenue drops out of sight.
They are overpaid anyway
I’ve had Dish for about 8 years. Now I only watch 2 shows a week and of course SEC and ESPN. I like in Cabot and would like some input from the posters what is a viable option. Let’s face it, I still have DVDs I bought in Iraq over 10 years ago that I’ve never opened. I have AMazon Prime but hardly touch it. Thanks.