On November 24th, Braxton Jarrett, CEO of ClearLeap, an online TV technology platform, wrote on TechCrunch, a technology blog, that traditional cable TV providers such as HBO and CBS have launched streaming media services in succession. It does not mean that traditional cable television will die. Streaming media service will be the gospel of cable television.
After market rumors have been long, HBO throws a blockbuster in mid-October, saying it will release an independent streaming media service in 2015. One day later, CBS Group and its Showtime channel also issued similar news, which made people feel that the pay-TV industry will undergo tremendous changes.
Naturally, a large number of authorities and experts in the field of research quickly jumped out to announce that the development of the latest situation represents the beginning of the end of cable television. But in reality only time has proved how disruptive these services are. It is too early to say that cable TV will die. These actions are only natural steps. Cable TV has not yet reached the point of disaster.
In the past few years, we have witnessed that Netflix and Aereo have begun to weaken the traditional cable TV model, and the overall industry began to change. The latest development trend indicates that the pace of change will accelerate, and once the slow evolution process is intensified, the following ripple effects will result:
Positive for Pay TV
Contrary to popular belief, there is a lot of interesting evidence that the independent streaming services of HBO and CBS will be the gospel of pay TV. VideoNuze's Will Richmond recently wrote that the cost of streaming media services is rising, and the simplicity and cost-effectiveness of traditional cable TV packages will be more attractive to consumers.
And this can also pave the way for virtual pay TV by increasing the attention of other OTT products, not just the services of satellite TV companies such as Verizon and Dish. The future is no longer the binary system of the line-users and cable TV users. The two sides began to merge and emerged in the middle of the road, users will subscribe to one or two streaming media services, and retain a lightweight cable TV package.
Enhanced mergers and acquisitions
Continuing rumors of transactions in the limited television industry in the past year, actions such as HBO will increase momentum for future collaboration.
When cable operators sign a transmission agreement with HBO, they will be eager to strengthen their position. Because the entire industry will develop toward OTT services, in order for the company to survive, only the small-scale television network of the traditional cable television business will seek to merge.
Increase network neutrality
Until now, content providers such as HBO and CBS have not considered network neutrality too much because the Internet is not their main distribution model, but now they are interested in ensuring that their streaming media is delivered to consumers quickly and smoothly. It is very likely that pressure will be exerted on Carconst and Warner to ensure that all network traffic is treated equally.
Or promote cooperation
Reed Hastings, Netflix’s chief executive, once asserted that Netflix’s goal is to become HBO faster, rather than having HBO catch Netflix. But now HBO has taken a big step on becoming a Netflix. How they will maintain competition in the future is worthy of attention. In particular, HBO's library is large and excellent.
One possibility is that Netflix seeks to cooperate with cable providers. Its content has been distributed overseas through a number of traditional cable operators, and it is also possible to subscribe in some small markets in the United States. So Netflix should probably sign a contract with a large company so that it can survive in both areas.
This approach may also accelerate cooperation between cable operators and other streaming services such as Hulu Plus and Amazon Prime.
Now only time can tell us how much impact these new streaming media services have on the television industry, but there is no doubt that this industry will undergo tremendous changes. Even if HBO's streaming media is not successful, it will surely attract other content providers who will undoubtedly publish their own OTT service.
After market rumors have been long, HBO throws a blockbuster in mid-October, saying it will release an independent streaming media service in 2015. One day later, CBS Group and its Showtime channel also issued similar news, which made people feel that the pay-TV industry will undergo tremendous changes.
Naturally, a large number of authorities and experts in the field of research quickly jumped out to announce that the development of the latest situation represents the beginning of the end of cable television. But in reality only time has proved how disruptive these services are. It is too early to say that cable TV will die. These actions are only natural steps. Cable TV has not yet reached the point of disaster.
In the past few years, we have witnessed that Netflix and Aereo have begun to weaken the traditional cable TV model, and the overall industry began to change. The latest development trend indicates that the pace of change will accelerate, and once the slow evolution process is intensified, the following ripple effects will result:
Positive for Pay TV
Contrary to popular belief, there is a lot of interesting evidence that the independent streaming services of HBO and CBS will be the gospel of pay TV. VideoNuze's Will Richmond recently wrote that the cost of streaming media services is rising, and the simplicity and cost-effectiveness of traditional cable TV packages will be more attractive to consumers.
And this can also pave the way for virtual pay TV by increasing the attention of other OTT products, not just the services of satellite TV companies such as Verizon and Dish. The future is no longer the binary system of the line-users and cable TV users. The two sides began to merge and emerged in the middle of the road, users will subscribe to one or two streaming media services, and retain a lightweight cable TV package.
Enhanced mergers and acquisitions
Continuing rumors of transactions in the limited television industry in the past year, actions such as HBO will increase momentum for future collaboration.
When cable operators sign a transmission agreement with HBO, they will be eager to strengthen their position. Because the entire industry will develop toward OTT services, in order for the company to survive, only the small-scale television network of the traditional cable television business will seek to merge.
Increase network neutrality
Until now, content providers such as HBO and CBS have not considered network neutrality too much because the Internet is not their main distribution model, but now they are interested in ensuring that their streaming media is delivered to consumers quickly and smoothly. It is very likely that pressure will be exerted on Carconst and Warner to ensure that all network traffic is treated equally.
Or promote cooperation
Reed Hastings, Netflix’s chief executive, once asserted that Netflix’s goal is to become HBO faster, rather than having HBO catch Netflix. But now HBO has taken a big step on becoming a Netflix. How they will maintain competition in the future is worthy of attention. In particular, HBO's library is large and excellent.
One possibility is that Netflix seeks to cooperate with cable providers. Its content has been distributed overseas through a number of traditional cable operators, and it is also possible to subscribe in some small markets in the United States. So Netflix should probably sign a contract with a large company so that it can survive in both areas.
This approach may also accelerate cooperation between cable operators and other streaming services such as Hulu Plus and Amazon Prime.
Now only time can tell us how much impact these new streaming media services have on the television industry, but there is no doubt that this industry will undergo tremendous changes. Even if HBO's streaming media is not successful, it will surely attract other content providers who will undoubtedly publish their own OTT service.
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