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    SME Assignment Comcast

    Uploaded by

    fahad pansota
    The document contains answers to 4 questions about the television industry. It discusses why HBO and CBS introduced OTT services like HBO Go and CBS All Access, suggesting it was to have more direct relationships with consumers and avoid cable operator fees. It proposes options for how Comcast could respond, such as launching their own streaming service. It describes consumer appeal of "cord cutting" as saving money by reducing cable subscriptions. Finally, it predicts the pay-TV bundle will continue to unravel as viewers have more internet video options, and that TV will become obsolete with 33% of people abandoning cable this year due to more convenient entertainment options.

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    SME Assignment Comcast

    Uploaded by

    fahad pansota
    41 views3 pages
    The document contains answers to 4 questions about the television industry. It discusses why HBO and CBS introduced OTT services like HBO Go and CBS All Access, suggesting it was to have more direct relationships with consumers and avoid cable operator fees. It proposes options for how Comcast could respond, such as launching their own streaming service. It describes consumer appeal of "cord cutting" as saving money by reducing cable subscriptions. Finally, it predicts the pay-TV bundle will continue to unravel as viewers have more internet video options, and that TV will become obsolete with 33% of people abandoning cable this year due to more convenient entertainment options.

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    The document contains answers to 4 questions about the television industry. It discusses why HBO and CBS introduced OTT services like HBO Go and CBS All Access, suggesting it was to have more direct relationships with consumers and avoid cable operator fees. It proposes options for how Comcast could respond, such as launching their own streaming service. It describes consumer appeal of "cord cutting" as saving money by reducing cable subscriptions. Finally, it predicts the pay-TV bundle will continue to unravel as viewers have more internet video options, and that TV will become obsolete with 33% of people abandoning cable this year due to more convenient entertainment options.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views3 pages

    SME Assignment Comcast

    Uploaded by

    fahad pansota
    The document contains answers to 4 questions about the television industry. It discusses why HBO and CBS introduced OTT services like HBO Go and CBS All Access, suggesting it was to have more direct relationships with consumers and avoid cable operator fees. It proposes options for how Comcast could respond, such as launching their own streaming service. It describes consumer appeal of "cord cutting" as saving money by reducing cable subscriptions. Finally, it predicts the pay-TV bundle will continue to unravel as viewers have more internet video options, and that TV will become obsolete with 33% of people abandoning cable this year due to more convenient entertainment options.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    SME

    Assignment

    Fahad Ahmad

    17U00092

    Section A

    Q1. Why did HBO and CBS introduce OTT services?

    Ans. HBO and CBS introduced OTT services in order for a direct to consumer service through

    streaming instead of having a customer pay a full television subscription. Both platforms looked

    to gain better deals with current distribution partners without having to worry about a middle

    man any more. They would be able to create their own pay packages at the fraction of the cost

    and rebid at a higher rate. Furthermore it reduced the dependency on Cable Operators: HBO had

    come to be known for its original high-quality content, but they were still reliant on the cable

    operators to market their channel which resulted in a varying viewer base ranging from 14% to

    42% across different cable companies. Additionally, in terms of revenue, they had to negotiate

    with the cable companies for a per subscriber fee. From Comcast after negotiations, they

    received $7.7 per subscriber, which was almost half of what the subscribers were paying to

    Comcast ($15). Furthermore, net neutrality prevented HBO from getting any prioritization.

    Moving to OTT at this stage would help HBO get more direct subscribers and a larger share of

    revenues from them

    Q2. How should Comcast respond to the announcements of HBO and CBs?
    Ans. Comcast has a few options. Comcast could join other TV networks and aim to become a

    streaming service themselves. This will result in an easy access to all the consumers who are

    already connected to the comcast cables and internet service. However, it will also add a bonus

    consumer angle that those who did not have access to these options will also get to view them

    due to the streaming service.

    Q3. What is the consumer appeal of cord cutting?

    Ans. In broadcast television, cord-cutting refers to the pattern of viewers, referred to as cord-

    cutters, cancelling their subscriptions to multichannel television services available over cable or

    satellite, dropping pay television channels or reducing the number of hours of subscription TV

    viewed in response to competition therefore it helps in saving a lot of money.

    Q4. Is pay- TV ripe for unbundling? What is the future of television industry?

    Ans. The pay-tv bundle is a gigantic iceberg that’s slowly melting. As Internet-video options

    proliferate, consumers will have a growing list of reasons to stop paying $90 or more per month

    for multichannel television. And the jockeying is now under way among programmers and

    distributors to prep the life rafts if viewers decide to jump en masse. A key change in the

    landscape: Major media companies, after years of resisting the Internet’s pull, have finally

    decided to step into the brave new over-the-top world, with video delivered not via satellite or

    cable TV, but through broadband.

    In future TV will become obsolete. Forecasters predict a 33% of people will be abandoning

    their cable service this year. It's not a matter of money, although saving money is a significant

    advantage of dropping cable. Still, it's more about having more options and a more convenient

    way of having entertainment at your fingertips

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