Image credit: Qilai Shen/Bloomberg News
Has the Entertainment Nirvana Not Yet Materialised?
As the Washington Post recently reported: “The dream of cutting the cord on pricey cable TV services went something like this: Consumers could get what they wanted, when they wanted, while saving money because they wouldn’t be paying for expensive bundles of channels they never watched. Snip, save, enjoy” [1]. But where is this promised Nirvana?
A Mini History
At the start, American consumers who were keen on streaming internet video, needed to subscribe to expensive broadband services. – Ironically though, these were often brought to them by the same cable wires they yearned to sever. - Then, Hulu, Amazon, Netflix, and other such services appeared on the scene – but they came at a price. And after this, more remotes, boxes and wires cluttered the living room.
But
What About Everyone's Favourite American Staples & Sequels?
Although it can be said that the
country's staples, spinoffs, prequels and sequels, will still be
accessible on other platforms for a certain period, Disney is set to
slowly remove them so that they are only shown on its own Disney+.
Naturally though, this will mean forking out for yet another monthly
sub, this time $6.99 [1].
“It’s not going to
come for free... People want to watch their ‘Breaking Bad,’ ‘Mad
Men,’ and that stuff costs a fortune” [1].
Craig Craig Moffett, an industry
analyst at MoffettNathanson, stated that: “If cord cutters thought
there was some way they were going to evade the tyranny of annual
price increases, they were deluding themselves [1].” Harsh? - Yes. Future reality? - Not
necessarily...
Disney officials have stressed that the
company's aim: “is to achieve revenue through reach, not
overcharging” [1]. In its first year alone, Disney+ is on course to
bring out 10 new films and 25 episodic series. Moreover, five years
down the line, users should be able to enjoy a whopping 50 episodic
shows [1].
When compared to Netflix's most popular
monthly plan, Disney's offer comes out at just 50% of the price. -
That's right – only half the Netflix bill... And this could be even
lower if users want to commit for 12 months. This means that
consumers are able to make a decent savings, thanks in part, to
Disney's shrewd investments in its theme parks and box office
productions; not to mention revenue from its other non-subscription
services, and television ads [1].
Yet Moffett declares: “Every
economist in the world tried to warn that the outcome of that system
would be higher prices and less choice. And lo and behold, that’s
where we landed [1].” But is he right? And will up and coming,
unique, cutting-edge next gen global platforms such as OONA
TV, which offers free AVOD, and subscription based VOD, come up
with another way?
The Great Debate
Analysers within the entertainment
industry, are divided over the inherent reasons as to why this
situation has come about. One cohort, Moffett included, believe that
the inevitability of this outcome was due to a number of foreseeable
reasons: “Americans want the best, coolest shows, and these cost a
lot of money in actors, set costs, big-name directors and special
effects. Even for a television show, these expenses can run into the
millions of dollars per episode” [1].
Image credit: Gulf News "End Up in Debt"
Yet, on the other side of the divide,
the group's perspective is that the industry’s mega players are at
fault for: “reasserting their control over pricing in a way that
disadvantages consumers — and Washington for allowing that to
happen” [1]. At the end of the day, however, whatever the reason –
unless something changes, consumers stand to make a financial loss
every month, while streaming providers roll in their profits [1].
Unfulfilled Dreams?
When it comes to the end game, as it
stands right now, there is little debate. Cord cutters' hopes have
been largely severed. Moreover, the evolution which some users
believed would empower them with more selection, reduced
subscriptions; and an easy to use entertainment service, has in
reality, resulted in frustration due to the unwelcome complexity.
And while there may still be a better choice on offer: “each of
these comes with price tags that, taken together, may well approach
the cable bills of old” [1].
Getting What We Want For a Decent
Price
Spokesmen at Disney+ made the very
valid point that their platform is especially suited to users who
crave simplicity. - And this is no doubt, a welcome alternative to:
“the thousands of scattershot shows and movies on Netflix.
[Moreover], Disney executives said they would offer a streamlined set
of offerings from their popular content brands including Marvel,
Pixar, and Lucasfilm” [1].
Research conducted by Tony Gunnarsson -
a leading Ovum analyst, indicated that most consumers are only
prepared to subscribe to 2.25 streaming services. Moreover, leading
figures in the industry believe that although the market is likely to
accommodate Disney, other streaming platforms will not have that Walt
magic [1].
So What's the Solution?
In one word – OONA. - This rapidly up
and coming new OTT TV kid on the block, is set to revolutionize the
industry, as unlike other players, it puts consumers in the front
seat. Why? Well, not only does it offer an awesome free on-the-go and
at home entertainment service via the OONA app; it empowers users
with a fantastic selection of hundreds of top local and international
channels; it even rewards them with a virtual currency (redeemable
for a broad range of branded goods and services, discounts, and free
telcom products), just for watching and sharing what they love. And
if consumers want to pay a sub to Disney or Netflix, etc., then this
addition can sit on top of their OONA TV base.
Doing the Math
This ideal scenario means that millions
of people in the US and indeed all over the world, will be forking
out far far less of their hard earned money per month, and they will
have the simplicity that the Disney execs were talking about. And if
users want special live baseball and other sports specials, and
exciting new content, then they can subscribe to the OONA+ SVOD
service. - This has so much flexibility, and you can even request it
just for special occasions, such as on certain weekends, or when your
family are on holiday. So what could be better than that?
Making an Impact
OONA is currently set up to serve 185
million Indonesians, and is well on its way to being established in
the US, other parts of Asia, Europe, Africa, South America and the Middle East. Headed by
leading digital strategist and AI expert, Christophe Hochart, the
platform's ethos has been the same ever since he founded it a few
years ago: to put consumers first; give telcoms, studios and content
holders an unbeatable deal; to empower billions of people with free
access to top entertainment, so they do not have to go to pirate
sites; reward loyal users with a virtual currency which can be used
for countless goods and services; and offer the latest cutting-edge
customer functions such as: making your own channel; and OONAbot, the
AI genie in the app who personalizes content, and arranges
personalised ads which can help consumers save time and money.
Reference
[1]. Zeitchik, Steven & Timberg,
Craig (2019). “How the dream of cheap streaming television became a
pricey, complicated mess.” Washington Post.
https://www.washingtonpost.com/business/2019/04/13/how-dream-cheap-streaming-television-became-pricey-complicated-mess/?noredirect=on-&utm_term=.7ad72c2b3aa4
Accessed 26 Apr. 2019. Accessed 28 Apr. 2019.
