VOD : The future for linear TV channels

I wonder what would happen if the main producers of content, who also own channels, stopped selling their content to broadband content suppliers?

[1andrew1]

Originally Posted by Hugh

I wonder what would happen if the main producers of content, who also own channels, stopped selling their content to broadband content suppliers?

The broadband content suppliers would go elsewhere for content and the main producers of content would have less revenue and be less able to produce more content.

[OLD BOY]

Originally Posted by Hugh

I wonder what would happen if the main producers of content, who also own channels, stopped selling their content to broadband content suppliers?

Selling original content is what makes the process profitable. Take that away and factor in reduced advertising revenue and that would spell disaster for the channel following such rules.

[1andrew1]

Originally Posted by OLD BOY

Selling original content is what makes the process profitable. Take that away and factor in reduced advertising revenue and that would spell disaster for the channel following such rules.

It would be good to see how important advertising is in the run of things. It's key for ITV but significantly less important for subscription services. Indeed, Sky is happy to forgo viewers and therefore advertising revenue for Sky Atlantic in order to retain it as a Sky exclusive.

[OLD BOY]

Originally Posted by 1andrew1

It would be good to see how important advertising is in the run of things. It's key for ITV but significantly less important for subscription services. Indeed, Sky is happy to forgo viewers and therefore advertising revenue for Sky Atlantic in order to retain it as a Sky exclusive.

Yes, but bear in mind that Sky has very little original material to sell anyway. Most content is bought in from other providers.

[muppetman11]

Originally Posted by OLD BOY

Yes, but bear in mind that Sky has very little original material to sell anyway. Most content is bought in from other providers.

So the same as Netflix then ? Who's content is majority bought in.

[OLD BOY]

Originally Posted by muppetman11

So the same as Netflix then ? Who's content is majority bought in.

That wasn't my point. We are talking about the continuing viability of our TV channels and the point was made that they could stop selling their original shows to the streaming companies. I was pointing out that Sky had very little original material to sell as most of it is bought in.

Some channels do have scope to sell on their material, such as the BBC and ITV. However most digital channels, including Sky, do not.

I'm not sure why you thought your point was relevant, muppetman. I wasn't criticising Sky, just saying that they have very little scope to sell on original programmes.

[muppetman11]

Who produces Sky News and it's many magazine shows ?

Sky Sports and it's many magazine shows

Sky Arts original content

Drama , Comedy , Talk Shows , Lifestyle shows across many channels.

Many of Sky's shows have been sold to overseas broadcasters. Doesn't Netflix show Penny Dreadful a co production with Showtime ?

[1andrew1]

Originally Posted by OLD BOY

I'm not sure why you thought your point was relevant, muppetman. I wasn't criticising Sky, just saying that they have very little scope to sell on original programmes.

I disagree with you, they have lots of original content and have a separate company established to market their rights and other companies rights overseas. They wouldn't bother doing this if they had very few rights. https://skyvision.sky.com/

Originally Posted by OLD BOY

http://advanced-television.com/2016/...ing-to-double/

Viewing on our conventional broadcast channels is forecast to decline from its present 80% to 53% within the next 10 years.

And yet the same article says

“Though operators and networks are now aware of these trends, few have any idea what they mean for the future of TV viewing – that is, the extent to and rate at which they will redefine the viewing mix in the next decade.”

So even the experts don't have the same certainty you have previously shown.

---------- Post added at 14:08 ---------- Previous post was at 14:05 ----------

Originally Posted by OLD BOY

Yes, but bear in mind that Sky has very little original material to sell anyway. Most content is bought in from other providers.

In fact Sky Plc has quite a lot of content to sell. You may be familiar with one of the group's most popular shows, Great British Bake Off ?

http://www.telegraph.co.uk/finance/n...-producer.html

[OLD BOY]

Originally Posted by muppetman11

Who produces Sky News and it's many magazine shows ?

Sky Sports and it's many magazine shows

Sky Arts original content

Drama , Comedy , Talk Shows , Lifestyle shows across many channels.

Many of Sky's shows have been sold to overseas broadcasters. Doesn't Netflix show Penny Dreadful a co production with Showtime ?

OK, fair comment, Sky have accelerated their investment in original programme, although their spend is currently about half that of ITV. However, the point remains that failure to allow other services to buy up original content may deny the streaming services of their material, but it will also deny our broadcast channels of much needed income if advertising income declines.

Furthermore, the streaming services will simply get their material from elsewhere.

Originally Posted by OLD BOY

OK, fair comment, Sky have accelerated their investment in original programme, although their spend is currently about half that of ITV. However, the point remains that failure to allow other services to buy up original content may deny the streaming services of their material, but it will also deny our broadcast channels of much needed income if advertising income declines.

Furthermore, the streaming services will simply get their material from elsewhere.

Where?

That bland statement covers a huge area - it often costs millions to make programmes/series, and there needs to be a return on investment for the programme makers; no one has yet shown a business model that does not require a vast majority of streaming services libraries coming from the existing programme makers (as they have the studios and the back catalogues).

Originally Posted by Hugh

Where?

That bland statement covers a huge area - it often costs millions to make programmes/series, and there needs to be a return on investment for the programme makers; no one has yet shown a business model that does not require a vast majority of streaming services libraries coming from the existing programme makers (as they have the studios and the back catalogues).

Exactly. The economics of the streaming services only stack up if they can bulk up their libraries with relatively cheap content from other broadcasters/producers.

If, for example, the BBC pulled Doctor Who from Netflix, the costs of making a show which appealed to the same audience would be many, many times more than Netflix pays the BBC for streaming rights.

Making back that cash would be very hard, certainly more so than recouping what it pays the BBC.

[OLD BOY]

Originally Posted by Hugh

Where?

That bland statement covers a huge area - it often costs millions to make programmes/series, and there needs to be a return on investment for the programme makers; no one has yet shown a business model that does not require a vast majority of streaming services libraries coming from the existing programme makers (as they have the studios and the back catalogues).

Apart from their own original programming and films, I would imagine the bulk wwould come from the US if the UK market dried up.

[1andrew1]

Iuzzolino only has time to watch three or four hours of television a day now – and he’s adamant that terrestrial TV is ageing and soon to disappear altogether, aside from live sport or events. “Do you really want to wait 10 weeks to find out what’s going on? If The Night Manager was put up online entirely today, people would consume it all – and it would still be a national conversation.”

[Walter Iuzzolino's company operates as Channel 4’s foreign acquisition service, buying shows ranging from vampire saga Heartless to Deutschland 83. Before then, he commissioned edgy shows like the The Undateables and Embarrassing Bodies.]
http://www.theguardian.com/tv-and-ra...deutschland-83