Randy Freer, CEO of Hulu, predicts that: over the next decade, the conventional pay-TV cosmos comprising 300-plus channels, will dramatically shrivel up, and just a dozen channels could survive. Speaking at NYC's 2018, BI Ignition conference, Freer noted that: “In the next decade, it’s not going to be about scheduled [linear] networks” [1] (the cable networks which have built a brand that resonates with viewers) – because the majority of today's television nets will probably be defunct.
So Is This
Prediction Right On?
To some, it may sound
off the wall, coming as it does from the CEO of globally revered Hulu
- which provides subscribers with a live stream TV package boasting
over 55 channels, not to mention the latest addition of linear nets
from Discovery. But Freer stands by his forecast. He: “believes the
pay-TV line-up is due for a radical makeover, [and] with the
exception of live news and sports, everything else in the TV bundle
will be distributed on-demand. In fact, as it stands, Hulu is
currently looking at slashing prices by assessing the skinnier
bundles roll outs which do away with entertainment channels' linear
feeds. Freer is adamant: “We need to figure out different packages,
what you’ll see is a transition from what we call ‘live TV’
today” [1].
A Robust Live TV
Market
Hulu is not profitable
these days. - In fact, according to regulatory filings by 21st
Century Fox and Comcast, it shed $440 million in Q3 2018, which
equates to over double its $207 million loss 12 months earlier, and a
$357 million loss in Q2. However, when it comes to Hulu's success at
signing up viewers for its live streaming television service, Freer
notes: “we think the live TV market is robust” [1].
Pay-TV's Contractual
Business Regulations
Freer's past industry
experience, which includes 20 years at Fox, noted his vexation at
being hamstrung by pay television's contractual business regulations:
“It’s crazy that we are still held hostage by the pay-television
industry and the MFN world,” he said. “Everything is tied back to
Comcast some how. We can’t innovate. Every time you negotiate with
one network, you’re negotiating with the entire industry” [1].
(MFN refers to TV carriage pacts' “most favoured nation” clauses,
whereby networks are obliged to render the same terms and conditions
that they provide to other pay-television distributors) [1].
Image credit: WorldTVPC
For Whom the Bell Tolls... Getting a Good
Market Share
In 2019, Disney will
acquire 60% ownership of Hulu, via its acquisition of 21st Century
Fox (a package which incorporates a 30% share in the joint venture).
A further 30% stake is held by Comcast, and the remaining 10% is
AT&T’s WarnerMedia.
Disney is looking to expand Hulu on the international
stage, according to Bob Iger, Disney's CEO. Moreover, Freer stated
that at the present time, Hulu is conducting an evaluation as to
which markets would be feasible to expand into, however, they have
not yet pinpointed any [1].
Freer remarked that:
“whatever country we go into, we have to have a reason for being
there. We’re a little late in some markets… It’s a hard problem
to come into [but] we are excited about some countries” [1]. As it
stands, Freer concedes that: “Netflix has probably solidified their
place for now,” [1] however, regardless of this perspective, it must be said that in the near future, Disney and Amazon are major game players that could shake things up. - Read "Netflix's Worst Nightmare Is Coming True" at Forbes... Hulu, meanwhile, is battling to gain market share
with other internet pay-TV and OTT services such as OONA OTT Next Generation Free Mobile
TV.
So What
is OONA OTT TV?
OONA is the futuristic
cutting-edge, data/subscription-free AVOD (ad based) live and on
demand interactive entertainment platform, which is set to serve 185
million Indonesians, and is on course to provide its unique
state-of-the-art free and premium service to billions of people in
other parts of Asia, Africa, the Middle East, South America, the US
and Europe.
With the impending
demise of cable networks, the streaming competition is in full swing.
Leading digital strategist, Christophe Hochart, the founder and CEO
of OONA Global, understands that platforms must do more than just
drive a consistent experience. - In OONA'a case, it must mean that
consumers are able to enjoy a positive life experience anytime, any
where, by enjoying hundreds of channels with the best live and
on-demand entertainment that the world offers; have interactive fun,
and enjoy being part of the OONA community; have their personal needs
and preferences met with OONA's friendly AI bot, Siskabot; and are
rewarded for watching content.
Standing Out From
the Crowd
The OONA platform is unique in that it gives its viewers loyalty rewards in the form of tcoins. This virtual currency rewards viewers just for watching content and personalised ads; sharing the content they love with friends and family; and interacting with OONA's genie in the app, Siskabot. These tcoins, can be exchanged for a broad range of branded goods, meals, fun days out, discounts, free telcom minutes and telcom products.
OONA - Delivering on
Quality, Convenience & So Much More
In the sphere of live streaming and video on-demand, the definition of a platform's brand is characterised by the quality of the content it provides. To that end, OONA's quality control department has the best possible proactive tools which are engineered to detect problems prior to viewers witnessing them. Moreover, it has a system which can continually detect, alert, and report important issues which impact consumers' viewing experience. This is paramount to the reputation of the OONA platform, and delivering first-class CX (customer service) [2]. After all, it is very simple for fed-up consumers to switch platforms within minutes.
Win-Win
Hochart, has developed a highly successful futuristic innovative business model for telcoms, studios and content holders. This has generated a win-win situation all round, and most importantly, delivers fabulous entertainment across all genres. Moreover, OONA's data-free and sub-free state-of-the-art entertainment, means that online video viewers no longer have to resort to pirate platforms, and risk prosecution.
References
[1]. Spangler, Todd (2018).
“Hulu CEO: Most Linear Cable TV Networks Will Be Gone in a Decade.”
Variety.
https://variety.com/2018/digital/news/hulu-ceo-cable-tv-networks-gone-in-a-decade-1203079367/
Accessed 7 Dec. 2018.
[2]. Murray, Dan (2018). “The Arrival of OTT Live Video.” Streaming Media.
[2]. Murray, Dan (2018). “The Arrival of OTT Live Video.” Streaming Media.
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