Media company frenzy

[mu03eng]

I always felt that cutting the cord was something that had some long-term risk as far as cost savings, especially once Netflix and Amazon launched streaming. When I looked at cord cutting a few years ago, if I wanted comparable services (HBO, Showtime, Netflix, full sports, etc) it was going to cost me as much or more than it was if I went with a cable company. Now that everyone is launching their own streaming services, the price will only rise.

Disagree. If I move to YouTube TV, Netflix, Amazon, and Dis(assuming its $10 a month like the others) I can cover 99% of what I'm doing now at half the cost by killing cable. Additionally the streaming services haven't had to directly compete yet, but as cable models die they will have to compete for the user base and will drive a pricing war IMHO

[jesmu84]

Disagree. If I move to YouTube TV, Netflix, Amazon, and Dis(assuming its $10 a month like the others) I can cover 99% of what I'm doing now at half the cost by killing cable. Additionally the streaming services haven't had to directly compete yet, but as cable models die they will have to compete for the user base and will drive a pricing war IMHO

Can I ask why you think there will be a pricing war? Maybe I missed it, but I didn't see a big war between cable providers or cable/satellite. Or a war between streaming music services.

I suppose if there was only 1 of each of those, the prices would be higher. But doesn't a "price war" mean they are actively trying to undercut each other by lower prices?

[NWarsh]

Can I ask why you think there will be a pricing war? Maybe I missed it, but I didn't see a big war between cable providers or cable/satellite. Or a war between streaming music services.

I suppose if there was only 1 of each of those, the prices would be higher. But doesn't a "price war" mean they are actively trying to undercut each other by lower prices?

Where did you live that you got the option of multiple cable providers?  The is the whole problem with the cable industry; it is very regional and there was really only 1 provider until AT&T came along.  Yes you could get a dish, but in the early days the dish was really unreliable (so I heard), and if you wanted uninterrupted* cable service you were stuck with 1 provider.

With streaming services, especially if the cable companies get involved, nobody is stuck with one provider.  They are free to choose who offers them the most for the best price.

*I use uninterrupted lightly as TWC was probably the worst provider when it came to reliability during gatherings of live sporting events.  It seemed like every time something would go wrong with the box or the signal.

[mu03eng]

Can I ask why you think there will be a pricing war? Maybe I missed it, but I didn't see a big war between cable providers or cable/satellite. Or a war between streaming music services.

I suppose if there was only 1 of each of those, the prices would be higher. But doesn't a "price war" mean they are actively trying to undercut each other by lower prices?

The key difference is the barriers to entry for customers with streaming services are significantly lower in this new model. If I've got internet I can join and exit streaming services almost at will whereas with cable I had at most 3 choices in the market, i was trapped in a 2 year contract and required a day to have equipment installed and it all had to be ripped out and replaced if I switch.

Once all these streaming services are going to have to compete head to head for users they are going to have to increase quality or decrease price to be successful

[MU82]

The key difference is the barriers to entry for customers with streaming services are significantly lower in this new model. If I've got internet I can join and exit streaming services almost at will whereas with cable I had at most 3 choices in the market, i was trapped in a 2 year contract and required a day to have equipment installed and it all had to be ripped out and replaced if I switch.

Once all these streaming services are going to have to compete head to head for users they are going to have to increase quality or decrease price to be successful

Agreed.

There also have been several new streaming services to come on board in the last year or two, and there will be more in the coming years.

Competition = good!

[brewcity77]

Disagree. If I move to YouTube TV, Netflix, Amazon, and Dis(assuming its $10 a month like the others) I can cover 99% of what I'm doing now at half the cost by killing cable. Additionally the streaming services haven't had to directly compete yet, but as cable models die they will have to compete for the user base and will drive a pricing war IMHO

My cable bill is around $140. That includes internet (needs to be factored in) and a phone line we don't use. At the time when I looked, Internet was at least $50, the comparable PS Vue package was $75, & premiums were at least $10/each (we have HBO, Cinemax, and Showtime). It was more expensive to cut.

They may be rolling out cheaper options than 2 years ago, but I was surprised at the time to see cutting the cord be as pricy as it was.

[🏀]

I'm currently trying out cord cutting. $40 for YouTubeTV and $20 for Philo for $60/mo. This will give me MORE than my $130 I pay DirecTV every month.

[mu03eng]

My cable bill is around $140. That includes internet (needs to be factored in) and a phone line we don't use. At the time when I looked, Internet was at least $50, the comparable PS Vue package was $75, & premiums were at least $10/each (we have HBO, Cinemax, and Showtime). It was more expensive to cut.

They may be rolling out cheaper options than 2 years ago, but I was surprised at the time to see cutting the cord be as pricy as it was.

I think cord cutting only "works" if you don't want all the content. You throw in things like HBO and Showtime it's just not going to be competitive.

[brewcity77]

I'm currently trying out cord cutting. $40 for YouTubeTV and $20 for Philo for $60/mo. This will give me MORE than my $130 I pay DirecTV every month.

How much is your internet? I've always had that bundled, so had to factor that in (though DirecTV gets insane after year one).

[🏀]

How much is your internet? I've always had that bundled, so had to factor that in (though DirecTV gets insane after year one).

$40/mo. Our options are limited in the rural districts when it comes to bundling

[MU82]

I've heard that folks sometimes get Netflix from friends, Hulu from parents, HBO from kids, etc. If they have enough of those sharing situations, they can just get the interwebs and stream till their heart's content for a relative pittance.

Or are all of those companies now closing such loopholes?

[dgies9156]

No cord cutting here.

In Florida, I live 60 miles from the nearest over the air television station and I'm not sure whether some streaming service will give me my beloved Warriors in the winter time. I need Comcast or AT&T to get my Wojo fix.

[Juan Anderson's Mixtape]

I've heard that folks sometimes get Netflix from friends, Hulu from parents, HBO from kids, etc. If they have enough of those sharing situations, they can just get the interwebs and stream till their heart's content for a relative pittance.

Or are all of those companies now closing such loopholes?

That's a good question. But how are they going to stop it? One of the selling points of streaming is being able to stream anywhere on demand.  Just sign in with your username and password.  Very easy to share with friends and relatives.

[reinko]

That's a good question. But how are they going to stop it? One of the selling points of streaming is being able to stream anywhere on demand.  Just sign in with your username and password.  Very easy to share with friends and relatives.

I've read somewhere that streaming companies view this as a minuscule problem at the time, and it would cost more $$$ to police/enforce it.  They are much more interested in ensuring their shoes aren't pirated and put on web sharing services.

Netflix has 100 million paid subscriptions, what are they are gonna do?  Penalize the 10-15% of those who share their passwords, and "kick them off" Netflix.  All they would be doing is losing 15% of their subscribers.

[mu03eng]

I've read somewhere that streaming companies view this as a minuscule problem at the time, and it would cost more $$$ to police/enforce it.  They are much more interested in ensuring their shoes aren't pirated and put on web sharing services.

Netflix has 100 million paid subscriptions, what are they are gonna do?  Penalize the 10-15% of those who share their passwords, and "kick them off" Netflix.  All they would be doing is losing 15% of their subscribers.

This, and they actual bake the user count into their business justifications so they get "credit" for having more users than subscribers in a weird way.

Bottom line, for the next 5 years, the streaming services are going to be held accountable for paid subscribers and they will be competing to get those subscribers.