Could NashGuy be right?

Discussion in 'TiVo Coffee House - TiVo Discussion' started by mschnebly, Oct 24, 2019.

  1. mschnebly

    mschnebly Well-Known Member

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    Mesa
    Bigg likes this.
  2. NashGuy

    NashGuy Well-Known Member

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    Hmm, not sure which of my predictions/WAGs this would be in response to. Now, I have said that cable operators in general are increasingly focusing on higher-margin broadband service and see TV as a secondary add-on. (That's been reported by many industry sources.) And I've predicted that cable TV operators that aren't major content owners -- basically all of them except Comcast and AT&T -- will eventually get out of the business of running their own cable TV services and instead just resell various streaming video services instead as add-ons to their broadband. But that's not what Comcast is announcing here.

    At any rate, it looks like Comcast is joining a lot of other MVPDs in realizing that there's no point in chasing after the low end of the market because they're irretrievably lost to direct-to-consumer streaming services like Netflix, Hulu, etc. Peacock will be the thing that Comcast pitches to those folks, leaving traditional cable TV as a more expensive option for the dwindling (but still substantial) number of consumers willing to pay good money for it.
     
  3. mschnebly

    mschnebly Well-Known Member

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    Yep, this is what I was talking about. You said cable cos. would drop all but the money makers. I really didn't think Comcast would come right out and say it.
    Also, I've been hearing that Peacock is going to be advertisement rich!
     
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  4. mdavej

    mdavej Well-Known Member

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    According to that story, Comcast is on track to lose nearly a trillion customers this year. They only have 20 million customers to begin with. And the population of the earth is less than 8 billion. Before they lose that many, they'll have to get every person on earth to get over a thousand subscriptions each, then cancel all of them. And all of those customers will be high value since each would be spending over $100,000 per month on cable TV.
     
    Last edited: Oct 24, 2019
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  5. tenthplanet

    tenthplanet Well-Known Member

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    Getting rid of unprofitable customers in nothing new, the tech press has re-invented the wheel (so they think). Most businesses have been doing this for years.
     
  6. Rey

    Rey Active Member

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    Yeah I think the writer meant Comcast will lose 943,890 subscribers over the next year.
     
  7. TonyD79

    TonyD79 Well-Known Member

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    Why not? Directv said this a few years ago.
     
  8. Slumpert

    Slumpert Member

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    My Roadrunner/Comcast/Xfinity cable/internet bill package was listed as $119 month, but the after fees and fake taxes came too over $193 month.

    Hard to believe I wasn’t a “Profitable” customer.

    Now if I could only find a way to get “Live PD” and “Below Deck” without spending $25 month just for those two shows my OTA transition will be complete.
     
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  9. kpeters59

    kpeters59 Well-Known Member

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    BitTorrent?

    -KP
     
  10. NorthAlabama

    NorthAlabama tabasco rules

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    if they do indeed go down this path, once accounting and wall street begin hollering about dramatically lower arpu generated by internet only customers, i have a feeling those opinions may change. :)
     
  11. dadrepus

    dadrepus Active Member

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    Yep!
     
  12. dlfl

    dlfl Cranky old novice

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    Only a solution as long as there are tens of millions willing to pay for the high cost of content production, not to mention being unethical.
     
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  13. V7Goose

    V7Goose OTA ONLY and Loving It!

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    Does my heart good to see that those bloodsuckers (All cable cos) are loosing customers so fast. NONE of their content is worth the ripoff - OTA ROCKS!
     
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  14. dadrepus

    dadrepus Active Member

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    This is also true. :(
     
  15. NashGuy

    NashGuy Well-Known Member

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    Doesn't look like A&E sells Live PD as digital downloads. (Well, they sell repackaged clip shows but apparently not the actual episodes that air on A&E.) Most broadcast and basic cable TV series do, and you can buy the entire season. If you buy the season while it's still airing (or before it starts), you can download/stream each episode the day it airs, or maybe the next day. For instance, you can buy the current season of Below Deck from Apple/iTunes for $14.99 in 1080p HD. So, about a buck per episode, and they're yours to keep and watch whenever you want.
     
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  16. NashGuy

    NashGuy Well-Known Member

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    Lower ARPU but higher profit margins; broadband is way more profitable than cable TV because the costs are so much lower. Wall Street seems pretty cool with the trend based on the analyst reactions I've seen so far...
     
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  17. NorthAlabama

    NorthAlabama tabasco rules

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    have you ever sat in a room while company executives are debating arpu? :)

    yes, profitability is a concern, but when it comes to tracking arpu, i've found it to be a lesser concern overall, and one of the primary reasons we were introduced to service bundling (along with locking customers in by making it more difficult to shop competitors).

    i've known companies to give certain, select additional services at near cost as add-ons to existing customers, with the goal of achieving higher arpu across their customer base, the focus being attractiveness to overall business health demonstrated to wall street for stock valuations and dividends, and i've seen no signs of this changing any time soon.

    sure, the higher revenue could come from different services not yet discussed (or even available yet), but i don't see companies eliminating services, or pricing them exorbitantly out of reach of significant numbers of customers, that would negatively impact arpu simply for higher profit margins. there would have to be a plan in place to offer replacement services to mitigate those impacts.
     
  18. mdavej

    mdavej Well-Known Member

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    So if something is too expensive, stealing it is an acceptable alternative? Would you do the same for any other product or service? I don't think most people would. Just because something is easy to steal doesn't make it ok to steal it.
     
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  19. UCLABB

    UCLABB Well-Known Member

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    I guess that depends on ones taste. The only thing I watch on cable that I could get ota is pbs.
     
  20. swyman18

    swyman18 Active Member

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    I thought RoadRunner was a TWC thing. Did Comcast use that name too for their internet service back in the day?
     

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