Disney and Charter are talking about carriage fees, and the outcome could affect how much you pay for cable in the streaming era

[huskymedic]

Disney and Charter are talking about carriage fees, and the outcome could affect how much you pay for cable in the streaming era

KEY POINTS

• Disney and Charter are currently negotiating a new carriage renewal deal, which has a deadline in early August.
• Talks that used to revolve around how much programming fees should rise now also revolve around how the introduction of direct-to-consumer services impact the value of linear networks.
• Charter and Disney are talking about what type of flexibility Disney will have with taking certain events from ESPN and also placing them on ESPN+.

Interesting lengthy discussion in article regarding ESPN and ESPN+. Among other points:

Moreover, Disney wants pay-TV providers to integrate ESPN+ into their user interfaces, just as Comcast has done for Amazon and Netflix content, according to a person familiar with the matter. Then, a pay-TV operator could sell ESPN and ESPN+ together for an additional fee, and a consumer could watch all ESPN+ content as a network, just like ESPN.

>>At this point, Disney isn’t asking to remove valuable assets from ESPN and shift them to ESPN+, two of the people said. That’s key. Charter isn’t going to want to lock in a rate increase for ESPN if the linear network could lose its exclusivity value in the coming years as Disney makes some events available to ESPN+.

But Disney will likely want the ability to place particular games on ESPN+ and add other sweeteners to entice more consumers to sign up for the digital service. And those games probably would have lived on ESPN or one of its companion networks. <<

 

[UConnJim]

This is a good article. One thing I would highlight is how cable providers are becoming less concerned about video subs as internet subs are higher margin. This is what could accelerate the decline in linear cable subscribers and push sports toward streaming services.

 

[WestHartHusk]

I didn't read it. But my view is that all these stand-alone streaming services (that rely on cable companies anyway) become too expensive standalone and end up getting bundled by the cable companies. Just like what cable is. And we are right back where we started.

 

[UConnJim]

I didn't read it. But my view is that all these stand-alone streaming services (that rely on cable companies anyway) become too expensive standalone and end up getting bundled by the cable companies. Just like what cable is. And we are right back where we started.

I have to disagree. More and more, the cable companies are focused on providing internet access over video content. And, most people don’t want all of the channels they are getting now.

And, you can get many channels over air in HD for free. I can get CBS, NBC, ABC, FOX, PBS, CW, Spanish stations, QVC, HSN, ION, MeTV,... Add in Netflix and a couple other streaming services and you get almost everything most people watch on cable at a significantly lower price. People probably don’t even know many channels are free over the air, but more and more people are catching on.

Imagine if you don’t watch sports on ESPN, FS1, and Regional Sports networks. Why are you subscribing to the cable bundle? More and more people are deciding not to.

 

[zls44]

And, you can get many channels over air in HD for free. I can get CBS, NBC, ABC, FOX, PBS, CW, Spanish stations, QVC, HSN, ION, MeTV,...

You and I can, living in the Northeast. Millions of Americans can't. You get 50 miles outside a city and you can't get much of anything.

 

[whaler11]

You and I can, living in the Northeast. Millions of Americans can't. You get 50 miles outside a city and you can't get much of anything.

I live 18 miles from Hartford and the only OTA i can get is the Ion affiliate out of New London. Maybe with some rooftop rig I could get more - but I’ve set up OTA for a bunch of people and none of them are without some issues.

 

[Hogoff]

I live 18 miles from Hartford and the only OTA i can get is the Ion affiliate out of New London. Maybe with some rooftop rig I could get more - but I’ve set up OTA for a bunch of people and none of them are without some issues.

I tried this outside of Columbia SC and got NBC and that was it.

 

[pepband99]

You and I can, living in the Northeast. Millions of Americans can't. You get 50 miles outside a city and you can't get much of anything.

Actually, it's got more to do with topography than anything else. 50 miles outside OKC, you're probably fine, because it's as flat as a table. @whaler11 's a more common case around here, in the northeast...

 

[billybud]

Here in the mountains of western North Carolina...OTA is a no go.
Still....regardless of transmission method (cable, streamed), the holders of content will find a price that it will sell at.

 

[WestHartHusk]

Here in the mountains of western North Carolina...OTA is a no go.
Still....regardless of transmission method (cable, streamed), the holders of content will find a price that it will sell at.

Like a cable channel.

And then the cable (err, internet) provider will offer to bundle it with their service for a 40% reduction in price, but generating 2x the “subscribers.” Back to start with a new name.

 

[Husky25]

This is a good article. One thing I would highlight is how cable providers are becoming less concerned about video subs as internet subs are higher margin. This is what could accelerate the decline in linear cable subscribers and push sports toward streaming services.

Could? It has. Cable providers no longer care if a subscriber cuts their cord. They know they are pretty much the only game in town, so to speak, for Internet access, which comes through the same cord.

 

[UConnJim]

You and I can, living in the Northeast. Millions of Americans can't. You get 50 miles outside a city and you can't get much of anything.

True, but there are millions of Americans that have cable that don't know that OTA is even available today. Ask any young person about OTA TV and they will have no idea what you are talking about. If you live in a metropolitan area of the US, you are going to have a large number of choices to watch content. If you live in a rural area, your options are going to be more limited.

 

[zls44]

True, but there are millions of Americans that have cable that don't know that OTA is even available today. Ask any young person about OTA TV and they will have no idea what you are talking about. If you live in a metropolitan area of the US, you are going to have a large number of choices to watch content. If you live in a rural area, your options are going to be more limited.

Don't underestimate millenials' ability to use OTA antennas.

 

[whaler11]

Don't underestimate millenials' ability to use OTA antennas.

the problem of course is other than some sports and local news if that floats your boat there is literally nothing to watch.

comet! laff! the cw!

 

[UConnJim]

the problem of course is other than some sports and local news if that floats your boat there is literally nothing to watch.

comet! laff! the cw!

The problem with the bundle is people watch maybe 15 channels of their bundle. Unfortunately for sports watchers, the content is subsidized by non-sports watchers. Imagine if cable companies offered people decent bundles without sports? ESPN and RSNs would be in a world of hurt as a large number of bundle subscribers would opt out of sports as the savings would be substantial.

As for OTA, there are plenty of things to watch in Boston: ABC, CBS, NBC, FOX, CW, PBS, HSN, QVC, Telemundo, Univision, independent stations, plus sub stations on digital channels. On the substations, there are 2 movie channels, ME TV, ... Digital OTA TV is not like old OTA TV as stations can broadcast multiple channels.

For some people, OTA with Netflix and maybe HBO is all they need.

 

[whaler11]

The problem with the bundle is people watch maybe 15 channels of their bundle. Unfortunately for sports watchers, the content is subsidized by non-sports watchers. Imagine if cable companies offered people decent bundles without sports? ESPN and RSNs would be in a world of hurt as a large number of bundle subscribers would opt out of sports as the savings would be substantial.

As for OTA, there are plenty of things to watch in Boston: ABC, CBS, NBC, FOX, CW, PBS, HSN, QVC, Telemundo, Univision, independent stations, plus sub stations on digital channels. On the substations, there are 2 movie channels, ME TV, ... Digital OTA TV is not like old OTA TV as stations can broadcast multiple channels.

For some people, OTA with Netflix and maybe HBO is all they need.

You kinda missed the point. There is nothing worth watching on those OTA stations.

Did you miss where I mocked Comet and Laff?

Yeah let’s all settle in for a good night of HSN! PBS? QVC? You can download Pluto TV and get all that garbage for free.

Sure there are some people thrilled with OTA/Netflix/HBO Now... and yet we were all better off with the bundle.

The bundle sucked when AMC was pumping out Mad Men and Breaking Bad. FX was cranking out The Shield and The Americans.

The local PBS has a third signal that shows Electric Company reruns - that’s totally better than the cable bundle before people got mad it and replaced it with a half dozen subscriptions to garbage outlets

 

[UConnJim]

You kinda missed the point. There is nothing worth watching on those OTA stations.

Did you miss where I mocked Comet and Laff?

Yeah let’s all settle in for a good night of HSN! PBS? QVC? You can download Pluto TV and get all that garbage for free.

Sure there are some people thrilled with OTA/Netflix/HBO Now... and yet we were all better off with the bundle.

The bundle sucked when AMC was pumping out Mad Men and Breaking Bad. FX was cranking out The Shield and The Americans.

The local PBS has a third signal that shows Electric Company reruns - that’s totally better than the cable bundle before people got mad it and replaced it with a half dozen subscriptions to garbage outlets

I get your point, but there are some things people will watch OTA. For example, NFL football, for the most part, is still OTA. You can get some college football and basketball and a few MLB and NBA games.

The problem with the bundle has been price inflation, especially with sports which has pushed people to alternatives. Imagine if you are not a sports fan and your bundle includes $20 per month of sports channels? It was a golden era for sports networks like ESPN as they required cable companies to carry their networks and consistently raised price. Those days are over.

 

[whaler11]

I get your point, but there are some things people will watch OTA. For example, NFL football, for the most part, is still OTA. You can get some college football and basketball and a few MLB and NBA games.

The problem with the bundle has been price inflation, especially with sports which has pushed people to alternatives. Imagine if you are not a sports fan and your bundle includes $20 per month of sports channels? It was a golden era for sports networks like ESPN as they required cable companies to carry their networks and consistently raised price. Those days are over.

Since it’s a message board about sports, I was speaking from the viewpoint of a sports fan.

Although everyone will look back and realize it was better and in the end only marginally more expensive.

 

[Husky25]

If you want a streaming service with no sports, your best bet is Philo for $20/month. This being primarily a college sports message board (as indicated by Whaler), that sort of defeats the purpose. I was looking at Philo a few months back because Youtube TV didn't offer the Nickelodeon family of networks. Philo does.

 

[Fishy]

You and I can, living in the Northeast. Millions of Americans can't. You get 50 miles outside a city and you can't get much of anything.

I live between New York City and Albany.

Based on the FCC maps, I cannot get a single station with a strong or moderate signal.

I technically have access to four channels with a weak signal - one channel that is owned by Jewelry Television and is not currently broadcasting, WJLP out of Jersey, WRGB out of Schenectady and WTNH out of New Haven.

In reality, though, I can only pull in one station - some weird Christian channel from somewhere in Connecticut.

 

[whaler11]

I live between New York City and Albany.

Based on the FCC maps, I cannot get a single station with a strong or moderate signal.

I technically have access to four channels with a weak signal - one channel that is owned by Jewelry Television and is not currently broadcasting, WJLP out of Jersey, WRGB out of Schenectady and WTNH out of New Haven.

In reality, though, I can only pull in one station - some weird Christian channel from somewhere in Connecticut.

I set up someone in Newington CT and they can’t even get WTNH.

 

[pepband99]

I set up someone in Newington CT and they can’t even get WTNH.

It's all topography and antenna type/placement. I had one hell of a time getting WTNH reliably from Fairfield, way back when. It was all due to WTNH being on VHF, and where my house was.

Now, from a hill in Monroe, I can get the stations in NYC full blast, at almost 60 miles out. 2 houses down the hill can't even get WTNH, at 15.

 

[Da_Aisijimo_Gou]

Actually, it's got more to do with topography than anything else. 50 miles outside OKC, you're probably fine, because it's as flat as a table. @whaler11 's a more common case around here, in the northeast...

In addition to topography, trees, weather, antennas used, position(s) of home antennas, their height and direction, station antenna location, etc. Patience, strong willingness to experiment, and trial and error matter.
One house: no worries with all available OTAs. 2nd: Now has 1 lightning strike-protected antenna on high chimney facing in direction of most OTAs + 2nd antenna in attic facing other OTAs.
Just like the glory days, all bets are off with a few storm clouds.

 

[Chin Diesel]

Actually, it's got more to do with topography than anything else. 50 miles outside OKC, you're probably fine, because it's as flat as a table. @whaler11 's a more common case around here, in the northeast...

Not necessarily. I'm on the Gulf Coast near Florida/Alabama border. ABC is local out of Florida, no more than 10 miles. Everything else I get is out of Mobile, Al. Went to Best Buy and they have a map of all the TV station antennas and distance circles to know what size antenna (power) you should get. No matter where I place antenna, I cannot get Fox and CBS and NBC pixalate and freeze up. Yet, I can get some bs small station 15-20 miles further away from Fox, CBS and NBC no problem. And there is less 100' of elevation change within 100 miles of anywhere from where I live.

 

[Alum86]

I live in the flatland Hartford burbs. I can plug a hanger into TVs and get most of the locals. With a 20 dollar antenna even more. But not WTNH.
Plus having DirecTV with 8 and 59 blocked because of money dispute, have not seen ABC for a month.
Disputes used to last a day or 2. Now both sides have dug in.