Is the Cheap Streaming TV Dream Becoming an Expensive, Complex Muddle?

     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?

                                                   Image credit: The Economic Times

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?

                                                Image credit: Peaceful Anarchism 

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.