Skip to comments.Who are we kidding? Of course it’s Netflix vs. cable (Dinosaur Media DeathWatch™)
Posted on 06/15/2011 1:05:37 PM PDT by abb
Ask Netflix about cord cutting, and itll tell you: Its not happening, its not anything we are causing, cable and Netflix are complementary. Then take a look at the actions of service operators, cable networks, consumers and even Netflix itself, and youre going to see a decidedly different picture: Cable and Netflix are competing for the same eyeballs, the same money and the same TV real estate, and the fight is getting tougher by the day.
Not convinced yet? Then consider this evidence:
Consumers are ready to jump ship. Netflix users that stream the companys videos to connected devices are twice as likely to at least downgrade, if not outright cancel their cable TV subscription than they were just a year ago, according to a new study from The Diffusion Group (TDG). Thirty-two percent of these Netflix users are thinking about calling their cable company. Despite its rhetorical positioning, both Netflix and Pay TV operators have long been aware that there will come a point at which its services are not only dilutive to regular TV viewing, but antithetical to Pay TV subscription levels, said TDGs Michael Greeson. In other words: In the long run, Netflix will inevitably lead to cord cutting.
Content licensing is getting more competitive. Netflix Chief Content Officer Ted Sarandos revealed recently that Netflix is now at the table for pretty much any TV licensing deal. So why arent Netflix customers buying more content? Because some of the networks simply dont like to share. Netflix would prefer cheaper, non-exclusive licensing deals, which would make it possible to get more bang for its buck. However, HBO and increasingly Showtime are insisting on exclusive content to prevent subscribers from jumping ship.
Many observers thought Netflix wanted in on this game when the company bought the rights to its first-ever exclusive show House of Cards this spring. Sarandos, however, said that it was exactly the other way around: Netflix was getting concerned that it would get shut out of too many deals for attractive serialized content, which is increasingly going exclusively to programmers like HBO, so it saw itself forced to act.
Cable companies castrate their TiVos. A number of cable companies now offer their customers TiVo-branded DVRs that offer access to all kinds of additional online content. But TiVo users who buy their devices at retail will be able to watch videos from Netflix and Hulu Plus with these machines, while customers who rent the same DVR from their cable company wont have access to these two services. The logic? Netflix could get people to ditch their premium channels and ignore cable VOD.
Netflix is dominating every screen. Network operators are trying to bring TV everywhere, but they often must feel like the hare racing the porcupine: Wherever they look, Netflix is already there. The companys service is now available on more than 250 devices, and Netflix is getting more aggressive about dominating every single screen. The latest ploy is a dedicated Netflix button on your remote control, which puts it in direct competition with your cable guide. That raises the question: Do you want to browse through thousands of channels, or simply access Netflix?
Incumbents are putting a cap on it. If youre a network operator, how do you keep your customers from canceling premium pay TV services to watch everything online? Canadian ISPs seem to think that bandwidth caps are the answer, and theyve been enforcing strict data diets for years. ISPs that charge consumers up to $2.50 per GB once they exceed caps as little as 2 GB per month have been a real problem for Netflix north of the border, forcing the company to default to SD-quality streaming for all Canadian customers.
Theres been some movement with regards to bandwidth pricing in Canada in recent months, but the conditions are telling: Shaw recently introduced generous 1TB caps and even unlimited data plans, but those are reserved for customers who have a pay TV subscription as well. Bandwidth caps in the U.S. are generally higher, but not really that generous either, especially if youre a heavy Netflix user.
Getting rid of dish this week. Going with internet, radio, netflix and video games for the kid.
TV is just throwing money down the toilet.
Well, if you have a life, and you have to go to work everyday, and you want to spend time with the family and friends, and attend church, and social events, etc., you realize there is only so much time in the day that you can devote to watching TV shows or movies.
There is only so much time you can spend watching something, no matter how you access the movies or TV shows. There are only 24 hours in a day, and something’s got to give. I can understand if you are heavily into something like Netflix that you would cancel out HBO or Showtime, or other cable/satellite services.
Good move. Our kids only see what we want, when we want - and here’s the biggie - with NO COMMERCIALS.
Netflix isn't that great. Their on-line delivery is nice, but the content they have to deliver is pretty poor, at least for my demographic.
It's kind of like a combination of 'lifetime' and 'Starz' (well, a lot of it actually is Starz). Lot of bummer "movies" you wouldn't want to watch. Their on-line "classics" are second-rate. Once in a while they put up a worthwhile movie or two. Maybe once a month.
Probably about the same frequency that HBO puts up something worth watching.
Of course, it's a lot cheaper than cable.
Kicking back at Newsweek
McGraw-Hill Puts Broadcast Biz Up For Sale
Warner Bros Lays Off 50 In Home Entertainment & Consumer Products
FCC Chair: Broadband Critical To Economy
Survey: Sure, We’ll Ditch Cable...Make an Offer!
The Cable Show 2011: Genachowski: Broadband Adoption ‘Just Not Good Enough’
Heavy Streaming Video Viewers Watch Less TV, Nielsen Says
Sales talks break down between owners of The Gazette and Denver Post
Regional Newspapers’ Merger Talks Break Down
Cable-TV Executives Say Industry Rolls With Digital Age
Daily Deals Rescue Local-Ad Market
Netflix may fray the cord, but I can’t see it getting snipped for that reason alone. Traditional cable companies carry a lot of live stuff that Netflix never will have (unless it, too, becomes another traditional cable company).
Now, I hardly watch TV at all, even free off the air, and have no cable service. I get my internet from my phone company. But enough people apparently like their bread and circuses well enough, and the circus part will never be duplicated in full by Netflix in its present conception.
Ping. See the two articles about Genachowski’s speech today. He’s not used the term “universal service” yet, but he’s hitting all around it.
In a net neutral world, they would not be able to do so, any more than the phone company can charge you more to call Domino's rather than Papa John's, or the water company can charge you more per gallon for filling your pool than for washing your car.
I cancelled most of my cable tv and went to Netflix. I’m trying to dump phone as well, because it makes me furious that my bill doesn’t go down when I want FEWER services. If I can find a substitute for internet, I’m dumping Comcast completely.
My daughter and I miss the Food Network, though. :)
That bit in there about ISP’s and bandwith caps explains EXACTLY the sort of Net Neutrality one can argue in favor of.
I love Roku. I can choose what I want to watch from Netflix.
TV programming and cable is awful.
I dumped Brighthouse and ATT (for my landline) because I was paying about $180 for the phone, cable and internet.
Comcast bundled and I got the same service for $110. Now they say that was a just a promotional service and now my bill is up to...you guessed it, $180. COMCAST will be cancelled at my home this week or next and I might drip the cable altogether.
I joined Netflix when it first opened, and shut off my cable a few months later.
Haven’t missed it at all.
When netflix gets the NFL, MLB and the NHL...I’ll think about “cutting the cable”...
All that matters is that they get their hands on your money.
After that, good luck getting hold of a federal customer service rep.
Actually cable ISPs are perfectly happy with the customers dumping the TV part of cable, so long as they keep on the ISP part. The TV part of cable is quickly becoming the loss leader, with channels constantly increasing the price they’re charging the cable company which then either forces the cable company to increase what they charge which alienates customers or let the increase eat into their profit. The internet portion of their business is free of that, they just need to keep the throughput up, which is easier the more people that aren’t watching TV.
The problem with net neutrality is it puts the government in charge. ISPs are easier to replace than the government.
I suggest that Netflix already is “another traditional cable company” that allows on-demand viewing and simply uses broadband fiber as the carrier instead of 75 ohm coax.
On a conservative website? REALLY??
A ‘net neutral’ world? You mean a world where the government is brought in to regulate the internet? Of course, this is the benevolent version of the government who never oversteps its power and ALWAYS is out to HELP the consumer, right? Yeah, let’s totally let the government who told us that the income tax would never be more than 10% regulate the internet. Let’s let the government who promised us that Medicare would NEVER cost more than $9B regulate the internet. Let’s let the government who told us that they’d only withhold taxes from our paychecks until WW2 was over regulate the internet! That’s the ticket! YEAH!
Netflix is charging you for a service that is increasingly monopolizing the ISPs networks. Either the ISPs can work a deal with Netflix, which will cause Netflix users to pay more for Netflix, OR the government can step in with ‘neutrality’ and the ISPs shift the cost to the end users, so EVERYONE WITH AN INTERNET CONNECTION WILL PAY FOR YOUR DAMN NETFLIX!!!!!!!
You can shift it around any way you like, but that cost is going to have to be paid by someone. It would be a much wiser decision to let the private companies work it out rather than having Daddy Government come in and start ‘regulating’.
I don’t use Netflix. I don’t plan on using Netflix and I don’t feel I should have to pay for your Netflix.
If Papa John’s was pawning the cost of delivering a pizza onto the phone company, you can damn well bank on it that the phone company would want to charge them more for the effort. Then every idiot and his retarded cousin would be on forums demanding ‘Phone Neutrality’ because some leftist Soros funded group told them it was ‘necessary’.
The fiber lends itself well to delayed viewing, but the coax is designed for real time.
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And oh woe, what if some phone company wants to partner with Netflix and arrange for an optional, extra cost feed that’s local so its infrastructure burden is minimal? Wouldn’t the neutralites’ heads explode?
Netflix has seriously screwed the pooch on their “New and Improved” UI. Announced on their blog; there are 5,000 comments (ALL NEGATIVE), and no more can be accepted.
I’m about ready to call and cancel.
Dropped Dish Network last year for Netflix over the Wii console. Just this month, dropped my ATT landline for DSL only. Just configured it last night. Switched to Vonage VOIP for landline. Please note that when you drop your landline, if you have DSL as well on the account from ATT it drops too and is less likely to be expedited for reconnect. We had 13 days without DSL.
We use internet for news, it even comes across on the Wii, all except local and we get that from the internet.
So far, no regrets. I hope to get Vonage connected tonight.
I have seen a tip for saving money that says drop cable and use Netficks, so yeah, cable and dish buh bye, you can’t rip off people anymore.
I’m told that new models of cell phones have similar teething problems, even the technicians don’t have them down flat yet, and still the public is clamoring for them.
C’est la vie de technologie.
I think everyone should pay for all the bandwidth they use, at the same price per unit of bandwidth regardless of what's being served up at the other end.
If a customer gets to watch all the HBO he wants for a flat rate per month, then the same deal should apply to Netflix.
Here’s one family who cut the cord and went to Netflix. We’re saving a buttload of money going down the drain for 100s of channels of crap.
That’s a fair point and worth noting.
A netflix HD movie uses about 3 gB. If cable companies want they can decrease the BW limits. AT&T DSL started in May with a 150 gB limit. Not too much of a problem. I believe some ISPs limit at 60 gB which could be a problem.
In an ideal world, there would be ISP choices everywhere, but...
Don’t confuse burst rates of transfer with sustained rates of transfer or with gross quantity of downloaded data demanded by the customer. Optimizing each one calls for different strategies.
So how come so many of them are capping/throttling their ISP services rather than the TV services?
How come no cable company has said "from now on your monthly payment only entitles you to 120 hours of TV a month"?
I love Netflix and plan to downgrade cable.
I can watch boring old shows that I choose for $9/month; or I can watch boring old shows that someone else choses for me for $80/month.
What’s the question again?
I love Roku...
I too have had it for about 3 years. Last night I wanted to watch a streaming movie. When I fired up it would not let me on because my wife was watching one on another tv.
This is the first time this has happened. Has somthing changed?
Now is the time to strike and deal a crippling blow tot he current TV model (infested by liberals) and help to replace it with one that is conservative or at the very least truly neutral.
I only use the cable company for my internet connection. I get basic cable anyway, which is more than I want. My son likes SyFy, I like FOX News and otherwise, we use NetFlix either by disk or streaming (again, piggybacking the internet connection).
Well you still need high speed internet access for Netflix and that’s what many cable operators provide. So I don’t see “cable” simply disappearing. They are in time likely to become Internet providers first and foremost without great regard to what actual data services are provided over it.
And if you want Netflix in HD you need lots of bandwidth that most DSL connections can’t provide.
I’ve never had cable at all. Can’t afford it. But Netflix’s unlimited DVD/Streaming deal is about $10/month. That I can afford.
I’ve never had cable at all. Can’t afford it. But Netflix’s unlimited DVD/Streaming deal is about $10/month. That I can afford.
Because it's no skin off their established nose to deliver their promised content real-time, all the time. Get a programmable recorder if you want to catch, say, what HBO is showing at a time inconvenient for you.
I agree, the movie selection tends towards the lame but I have found a huge amount of programming on Netflix, so much that I have more saved to watch than I’ll ever have time to see.
Right now, I’ve just started Lock-N-Load with R. Lee Ermy. I’m also watching Pawn stars which to my surprise is both educational and entertaining. I have dozens of TV shows saved that look interesting but I haven’t started yet. I cut the cord a decade ago so all of these shows are new to me.
If you pay for 1 DVD at a time service you get 1 streaming video at a time. If you pay for 2 DVDs at a time you are allowed 2 streaming videos at the same time and so on.
Your Internet connection also has limited bandwidth and may not be able support multiple streaming videos at the same time, particularly if one or both are HD.
Already did it and do not miss the cable at all. I cut it off 4 months ago.
You can still go on news sites and watch the interviews.
Netflix, Hulu, etc... they are all pretty good.
Just bought a Roku hooked that baby up to a 2TB HD. I rent movies from Netflix and RedBox and I burn them to the Roku. I get all the new releases on the market for a buck a piece. I then use Netflix to get premium cable shows from HBO, Showtime, and AMC. We’re saving a bundle, I do miss sports though, thanks Obama. :-/