Thread: VOD Linear is old tech - on demand is the future
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Old 01-06-2019, 15:51   #905
OLD BOY
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Re: Linear is old tech - on demand is the future
Quote:
Originally Posted by jfman View Post
On the contrary, Old Boy, you can only compare it with anything you like with a flawed understanding of economics.

You are the one that has described restrictions on distribution methods, vertical integration and all the classic characteristics of monopoly and oligopoly. You have even described it as a market that multi-billion dollar companies will be unable to compete in. That’s not the conditions of perfect competition driving down prices for end users.
I have no recollection of ever stating that this will be a market that multi-billion dollar companies will be unable to use! That’s a conclusion you have drawn yourself.

What I see happening is more streaming services set up with a vast amount of content. Some will be subscription services, others funded by advertising and it would not surprise me if some offered both alternatives.

Some of them will be big, like Warner and Disney; others will be smaller, like StarzPlay. Whether the smaller ones will join together or not in time to compete with the giants, we shall see, but if they are cheaper, they could probably stand alone and not be absorbed by the larger providers in the short term.

You keep going on about economic viability, and I believe that in your head, Netflix and Amazon should not even be here! You disregard in your calculations the fact that Amazon is prepared to see their Prime streaming service as a loss leader to promote their retail business and that Netflix will continue expanding for some time yet. Obviously, there will come a point where they won’t have to spend such huge sums on their content and at that point they might be prepared to allow other outlets the ability to watch their content. This is already happening, by the way - Designated Survivor is now showing on pay tv channels. So that is further income for the streaming companies.

As far as the amount of new material being shown on the scheduled channels is concerned, we can already see how this is drying up. Unless they rely more on their own original material, they will be resorting to content already shown for a few years on the streamers and the films will be older too if the studios redirect their output. So Sky Cinema channels would suffer.

So the scheduled channels will suffer from reducing advertising revenues caused by poorer and/or older quality programming and existing viewer trends towards VOD.
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