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Monday, July 15, 2013

MooPig Tech Coroner :: "The Death of Paid Television"

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$2.2 trillion Entertainment Industry about to Metamorphose
by Pat Darnell  |  July 15, 2013  |  Bryan TX

When you say "Content," you have said it all. Everyone still wants content. Name all the Tech/Entertainment industries that have been found dead on arrival since the Internet began: Record Companies, big Box Retail Shopping, Telephone, Stockbroking, Bookstores, Travel Agencies, ... what's next?

Our Internet has the ability to transform - transfigure - change - transmute - convert businesses' modes of operation to the point of "transform or get out."

But everyone still listens to music; everyone still watches movies; everyone still trades stocks, everyone still reads newspapers ... just not the way they did last century. Guess what -- everyone still wants to watch television.

And everyone [58%] hates cable TV.

Using your imagination can you imagine a different world of TV? Google Fiber, Apple TV, and Amazon have prepared for this Fall, 2013, to be their declaration of war to win in your living room. A lack of imagination will limit you to doing it the old way, and not being satisfied.

Ask yourself: "Why would I need cable to watch TV?"

New choices ... watching shows online, game consoles can put your favorite shows on your TV. Shows can be watched on mobile devices. Special rabbit ears will get you sports events, circumnavigating cable.

The next generation will not watch TV on cable.



Pribek said...

"Why would I need cable to watch TV?"
Funny you should ask.
In the new digs we are purposely without cable TV.
The current setup: Hulu Plus subscription and MLB TV subscription.
In the living room we use the Playstation, in the bedroom a Roku.

Every piece of the chain involves proprietary idiosyncrasies...Playstation has YouTube access, Roku does not (but the YT interface is frustrating to the point ya' say screw it).

Hulu offers more current network fare then Amazon Prime or Netflix but, some shows are only up for a limited time...Netflix and Hulu have comparable movie selections and both are a few steps behind the Red Box etc.

There is the option of hooking up the PC to the TV as well and that widens your choices...History Channel, Discovery and such, current CBS shows and used to be able to get decent live network news feeds but, they seem to be discouraging that now.

Basically, with a combination of devices and subscriptions you could simulate the cable menu. It would cost less than cable if you have the hardware laying around.

But, you don't get the channel surfing experience which, is the secret weapon to keep you watching...i.e. if you have to actively search FOR something rather than just flip through and light on something you are more apt to say screw it and read a book or change a toilet seat instead.

The biggest negative to the setup so far is when a Cardinals game is broadcast Nationally or local market (Braves and Reds), MLB TV blacks it out.

Biggest plus so far: I have seen absolutely zero George Zimmerman trial or resulting "riot" coverage.

Patrick Darnell said...

I have tried to distance myself from all things Florida... but I am still on faecesBook, so my friends keep me posted.

The reason for my post about the demise of cable TV is a little bit more involved than I let on in the post. I am going to try to make money on the end game of the ensuing media war. I am researching on what companies to invest in on a ten year plan to make a windfall for us in our retirement years [just around the corner].

This cable thing seems promising, as any, that it will follow a similar pattern of stock market blah blah folder-ole, and it just might turn somehow out favorable to those who calculate.

That's my story and I'm stickin' to it.

I see you have media covered well in your new abode... but you don't speak of any wall hangings.

Two things and I will stfu, housing made a upward move this Summer, and government spending was less than revenues for a surplus in June '13.

I still believe that housing [you know, starts, purchases] is the leading economic indicator mainly because it involves long term money. You guys probably got your new pad at just the right time during a buyers market.

Everyone in the "financial life and times pundit circuit" had said that a surplus was a distant happening. So much for that.

See you in "Jay and Silent Bob" movie on netFlix.

Pribek said...

I'm not sure on what you're plan might be to parlay the demise of cable in to a windfall.
There are five real players in the game: Comcast Corp., Time Warner Cable, Cox Communications, Verizon, AT&T...Cox is technically a private company, Comcast just bought out GE.

Why would GE get out? Who knows...monopoly/cartel capitalism. If it all falls apart, the same companies are vested in the alternatives, same as energy and every other industry.

Almost ten years ago now, I was involved in the sale of music publishing rights where the value was well in to 7 figures. I was told that, at that value there would be very few possible bidders. Turns out, there was really only one; SONY. I found it curious. SONY is arguably the biggest player in the music biz but, it's peanuts in their overall picture. Why would they be interested in intellectual property that they had been partially responsible for devaluing with their hardware sales empire?
The answer is they think long term. The publishing they bought may be worth a trickle of what the former flow was but, the trickle goes on for the next 50+ years. Their math showed that would recoup in 12 years or so and after that gravy. Since that time, SONY has been on a publishing buying spree as the values continue to dwindle.
With a bit of time passed since all of the initial uproar, all of these industries that rely on content are looking more like they are failing by design. The existing content that is part of the lexicon is being corralled and new content is controlled completely.

Surplus for a month you say? How's it look against $15 Trillion and $400+ Trillion in backed derivatives?...and the Fed pumps on...

The loan on the house was delayed because there was a slew of new applications for gov. backed loans...not the most negative but, not entirely positive as it does not appear that banks are freeing up money to buyers without the gov. backing.

Big plumbing crisis today and a gig wal hangings as of yet...
Signing off now in a blaze of scatter brained glory

Patrick Darnell said...

Thanks for dropping by, twice! Here are three of the ones to watch for content in the next wave of audio/visual arts, or the new golden age of TV, and such:

Discovery Communications
(Nasdaq: DISCK)

Scripps Networks Interactive

Walt Disney (NYSE: DIS)

Signing off due to being late for my mid-afternoon nap.


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