TiVo chief: cable should embrace OTT

Discussion in 'TiVo Coffee House - TiVo Discussion' started by Johncv, Nov 10, 2011.

  1. Johncv

    Johncv Well-Known Member

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    http://www.digitaltveurope.net/16132/tivo-chief-cable-should-embrace-ott/

    TiVo chief: cable should embrace OTT
    October 10, 2011


    Cable operators should consider bundling over-the-top services from the likes of Netflix as part of their offering, according to TiVo CEO Tom Rogers.

    Speaking at an Advertising Week event in New York, Rogers said that TiVo was now seeing greater interest in its products from US cable operators. He said that it was important for the cable industry to embrace over-the-top content in order to combat ‘cord-cutting’ by subscribers.

    Separately, a report from research group Magnaglobal has suggested that up to nine million additional US TV homes may be without pay TV services by 2016, with about four million homes cancelling their services and a further five million homes taking a decision not to subscribe to pay TV in the first place.
     
  2. rainwater

    rainwater Active Member

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    The problem is cable companies in the US are no longer profitable in the cable tv part of the business and without VOD they would be sunk. So they will never see the value of giving users Netflix, etc.
     
  3. sbiller

    sbiller Active Member

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    Although the cable operators are losing video subscribers they are still making a lot of money on them. The ARPU has been going up every quarter. The losses are mostly basic video subs.

    VOD is very profitable but the operators are now seeing that its more important to maintain the TV input on the cable feed via a leased or retail STB versus a stand alone OTT solution.

    Its the content providers who are hesitant about allowing access to OTT content on cable operator provided STBs.
     
  4. aadam101

    aadam101 Tell me a joke

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    This just goes to show how out of touch Tom Rogers is. Why on earth would cable operators give away a piece off the lucrative OnDemand business?

    Tivo offers OTT services and look where they are? Barely hanging on......

    Tommy is in no position to be offering cable operators any kind of business advice.
     
  5. mattack

    mattack Well-Known Member

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    It really costs them $70+/month to provide me the various channels?

    That sounds very hard to believe.
     
  6. innocentfreak

    innocentfreak Well-Known Member

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    I don't necessarily buy it either, but I believe for example on average ESPN gets $4 per subscriber. Now they are supposed to be the highest but many channels are starting to push for over a $1. One of the recent disputes was because the channel wanted around $2. I don't remember which one though.
     
  7. aadam101

    aadam101 Tell me a joke

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    I have not seen any evidence that cable operators are not profitable. They are losing subscribers but that is hardly the same thing as not profitable. They will still need to use MILLIONS more subscribers before they will ever become unprofitable.
     
  8. rainwater

    rainwater Active Member

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    They are profitable because of broadband and video services (VOD). I don't think anyone said they weren't profitable. But if you look at the rising fees per subscriber, the actual cable business isn't very profitable.

    No way they are going to allow OTT content that competes with their video offerings.
     
  9. jtreid

    jtreid Member

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    Please provide reliable data to back this up. You keep saying they only are profitable because of broadband and VOD. Where did you find data to support that?
     
  10. sbiller

    sbiller Active Member

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    Rainwater, I challenge you to explain this --> http://www.cedmagazine.com/news/2011/11/charter-enables-netflix-hulu-amazon-searches-on-web-portal

    While cable operators, analysts and industry experts have long posited on the negative impact OTT video providers are having on cable operators' loss of basic video subscribers, Charter said its new search approach was an industry first. Instead of focusing on OTT providers as competition, Charter is accentuating the positives of its broadband network, which is a similar approach espoused by Time Warner Cable.

    "We recognize that people embrace [OTT video], and we think the broadband pipe is superior," said Michael McMahon, vice president of Web experience and application strategy at Charter. "Ultimately, we believe it's the best customer experience to have that kind of unified view of what they're looking for, so that's what we want to offer."
     
  11. rainwater

    rainwater Active Member

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    All that is is PR. The stick a link on their web portal and all of a sudden they are embracing OTT providers? Let me know when they offer Netflix and Hulu on a cable box.
     
  12. Series3Sub

    Series3Sub Well-Known Member

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    Actually, Netflix, etc. hurts the Premium Movie services such as HBO, Showtime, etc. The trend is that many subscribers are NOT cancelling all cable or sat services, but they are cancelling their subscriptions to the premium movie packages, and instead subscribing to Netflix or Amazon Prime, etc.

    That is causing some loss for MVPD's, but NONE of the big cable cos. or sats are anywhere near not being not-profitable. Now, the very small or mid-sized ones is a different story, but NOT the Comcat, CableVision, TWC, etc. nor DirecTV, nor even Dish that while it has lost subscribers over the last few quarters has seen profits RISE and costs go DOWN and even seen current subs UPGRADE services. All the MVPD's out there are doing FINE, for now. The question is what they will be in 5 years.
     

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