Category: sports programming

Where is this all heading?

I’ve been watching with deep interest the progress of various video platforms as they emerge and develop, from YouTube and Netflix to Twitter and DirecTV Now. Here’s a brief rundown of a few of them from eMarketer that should give you an appreciation for the current state of flux, as well as the huge potential for coming disruption in the marketplace.

It seems that first we had simple websites that provided a platform, notably YouTube and Vimeo. Then we saw the TV Everywhere approach from HBO Now, as well as non-cable providers like Netflix, Hulu and Amazon. There’s a move to applications that can provide video content, from sports leagues to Twitter and Facebook. But it is such a tangled web that there is no clear indication as to where it will all shake out.

I suspect that a combination of advertising strength with high-demand content will drive this initially. Those platforms with which advertisers are comfortable (YouTube, Facebook, etc.), and content that is both timely and popular (primarily sports), will be the leaders in the transition that is currently underway. This is a chapter that is very much being written, and companies will rise and fall depending on their ability to forecast and anticipate the trends. But this much continues to be clear: Those who control the rights to this content (sports, awards) will control much of the destiny, and those who must pay for licensing  those rights will face increased price pressure in the coming days (witness ESPN’s effect on Disney stock).

Discuss…

Is this the beginning of the end of programming middleman?

It seems that, with every passing day, the importance of traditional content distributors is on the wane. Nowhere is this more stark than the plight of sports programming. As the stock price of Disney continues to fight the inexorable gravity of ESPN’s fate, these kind of comments are exhibit A for the future of not just sports, but all content on the internet:

“The NFL is constantly looking to serve our fans premium NFL content where and how they want to see it,” said Hans Schroeder, senior VP, media strategy, business development, & sales for the NFL.

With the emphasis  now on OTT distribution and mobile devices, the status of ESPN and DirecTV’s NFL package are being seen as bloat. In the past, broadcast networks and cable stations were essential links to the public, today’s growing number of alternatives make these programming middlemen unnecessary. As stated in this article, the leagues can now turn to multiple distributors, such as PlayStation Vue:

“PlayStation Vue offers more than 100 live TV channels. It has deals with programmers including AMC, CBS, Discovery, Disney, Fox, NBCUniversal, Scripps Networks, Turner Broadcasting and Viacom.”

So, instead of set-top boxes turning to ESPN for sports, they can turn to the leagues themselves and eliminate the middlemen (and its accompanying fees) to provide the same experience with added savings. And I would think that it won’t be long before Warner Brothers Television, Alcon Entertainment, and the other myriad scripted content providers completely bypass the networks and just license their wares directly to OTT services, or other online streaming companies.