OSUK
Sometimes lucid, mostly confused
For sure, the emerging technology is a problem for them, and cable and satellite companies have made some mistakes. The music industry didn’t like their music sold in I form, but eventually embraced it, and they seem to be doing pretty good with it, but where would they be if they insisted you buy their CD’s at a store?These are all good points, but I'm not sure how much it relates to the steady decline in cable viewership. This decline isn't just an ESPN thing, it's cable in general. Now, the fact that they have overpaid for broadcast rights, yeah that's a problem. As is supporting LHN if it cannot hold its own.
But if mellenials don't want to watch, or at least pay for watching sports, then the industry will change.
A la carte programming will ultimately offer a huge change as well. I suspect that many existing networks and programs will die with a la carte or they will find their way going the YouTube route.
I think there is a general feeling that cable and satellite have been raping us for decades, especially with bundling packages – to get these 3 channels they know we want, we have to buy these 72 channels that we never watch. It’s like being required to buy 10 lbs. of prunes at the grocery in order to buy a bundle of bananas. It’s a bad sign when people are purchasing your product, but they think they are being used and over-charged.
The market will eventually provide something that is less expensive and more tailored to customers’ wants. As you note, ala carte ordering will really change things, but I have Direct TV, and they are clearly committed to the bundling concept – and why not? They have made a boatload of money doing it, but almost all of their customers will jump ship as soon as they have a better option. I will.
I also think customer service has been a problem. Direct TV is pretty good, but Dish is a nightmare – especially if you want to talk to a person.
With better and more reliable internet and streaming, I’d guess that eventually every channel will become its own direct distributor, and people will truly have ala carte choices.
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