There’s a reason why the ice storm that struck the D.C. area this past weekend—Mother Nature’s latest insult in this seemingly interminable winter of 2015—didn’t sting quite as much as it might have: on Friday, Netflix made the entirety of the third season of its political thriller “House of Cards” available for viewing. Let the binge watching commence!
The series, which debuted in 2013, marked a significant gamble for Netflix. The company was in the process of morphing from a mail-based DVD distributor to a provider of streaming video content. Yet without a way to differentiate themselves from other online content providers, Netflix’s market share would never be truly secure. The key to the service’s ongoing viability would be coming up with something that nobody else could provide consumers. It rolled the dice with Frank Underwood and “House of Cards.” Read more
(Google purchased YouTube in 2006 in a transaction valued at $1.65 billion.)
Dubbed “YouTube Music Key,” the service is designed to compete with companies such as NetFlix.
Pricing for YouTube Music Key will start at $7.99 per month, and, in addition to removing advertising, will also allow viewers to watch videos offline and listen to music while using other applications. Read more
The worldwide pay-TV market is estimated to have grown by 5% in 2014, encompassing more than 924 million subscribers, according to technology market intelligence company ABI Research.
“IPTV is expected to grow a market-leading 14% in 2014, followed by satellite TV platform at 7%,” said ABI Research vice president and practice director of core forecasting Jake Saunders. “The growth rates of cable and terrestrial TV platforms are expected to slow to around 3%.”
Much of the worldwide growth is driven by countries in the Asian-Pacific and Latin American regions, combining to add 13 million subscribers in 2014. By contrast, the North American cable TV market is expected to shrink by 1% in 2014. Cable TV operators in North America lost 400,000 customers in the third quarter of 2014 alone, ABI Research reports.
In the increasingly competitive marketplace, providers are trying to grow revenues by offering high definition (HD) channels, advance services and premium content. “The worldwide HD subscriber base is growing on all pay-TV platforms,” said Khin Sandi Lynn, ABI Research industry analyst. “Approximately 57% of total pay-TV subscribers will be HD subscribers by 2019. ABI Research forecasts the global pay-TV market will generate US$324 billion in service revenues by 2019.”
Viacom, Inc. announced last week that toddler and tween favorite Nickelodeon will soon join the growing list of cable channels to be made available as a stand-alone Internet offering. For those of you without pre-teens in your household, Nickleodeon is home to the much beloved Spongebob Squarepants, a slightly hyperactive rectangular sponge who “lives in a pineapple under the sea.”
It is expected that Viacom will formally announce details—including the name of the service and its cost—in the coming weeks. It is a matter of speculation whether the online offering will be identical to the channel currently available to consumers, and whether subscribers will be able to access older Nickelodeon content on demand.
According to Viacom CEO Philippe Dauman, the stand-alone Nickelodeon service “will target the fast-growing mobile market [and] will be very attractive for parents and children.”
A number of other channels have preceded Nickelodeon into the over-the-top world. HBO and Showtime will soon launch their own online offerings. Sony Corporation and Dish Network plan to make available online programming packages that had previously only been available by subscribing to a cable or satellite system. And Sony also plans to offer a special programming package—dubbed “PlayStation Vue”—solely to owners of the company’s PlayStation game consoles.
While purchasing over-the-top programming on an a la carte basis does allow consumers a means of customizing programming to match their specific tastes, the reality is that the cost of multiple individual subscriptions quickly surpasses the price of a traditional bundled package.