AS THE WAYS IN WHICH consumers can get video content proliferate, traditional media producers and distributors are worried about their future.
They hear tons of anecdotal evidence that Canadians are ending their cable, satellite or telco TV subscriptions in favour of getting their favourite shows online: the so-called cord-cutting phenomena.
Is it real? For some we’ve talked to, it sure is. They’ve abandoned their cable subscriptions in favour of a combination of off-air digital signals from TV broadcasters with a broadband connection where they can go “over-the-top” to find enough TV and movie content (from the likes of YouTube, Netflix, broadcaster web sites and so forth) to keep them happy. Plus, and perhaps more importantly, it’s supposed to keep more money in their pockets.
But the numbers don’t back the stories. People are buying more content from the traditional distributors. Pay services like The Movie Network and Movie Central are adding, not losing subscribers.
So, what’s going on?
As we were in the midst of our work to find out, the CRTC responded to the TV industry’s concerns and began a month-long, fact-finding consultation to try and figure out what OTT is and whether or not the unregulated arm of the video business is having a serious impact on the Canadian regulated television industry. Then, one supposes, the Regulator could decide to do something about it with a hearing and new policy. Or not.
And as recently as last week, Corus Entertainment CEO John Cassaday told Cartt.ca IN-DEPTH he doesn’t see OTT newcomers like Netflix as a threat, but just an addition – another way for consumers to get more video content – and the more they consume, the better it is for every company with popular shows on offer.
But as more Canadians turn to Netflix, AppleTV, Boxee, Roku, GoogleTV, Facebook, Microsoft, Nintendo, Sony, Hulu, TouTV, RODO, and their smartphones for their favourite shows and movies, the future is cloudier than it’s ever been.
For example, I can access Netflix from my laptop, iPad, AppleTV, Boxee and Wii in my home, if I want to rent movies from the most popular OTT provider (unlimited for $7.99/month). Or I can still rely on my old standby, cable. $150-plus/month, but with zillions of shows/movies/news Netflix doesn’t offer. Besides, cable is already connected and super-easy to use and I still really like my PVR.
Will all that new flexibility and apparent cost differential lead to, if not cord cutting, then trimming, where I pick far fewer channels I really want (like local stations and live sports), and drop others in favour of a jumble of services that deliver all the content I want to see that my friends liked or recommended on Facebook or tweeted about on Twitter?
And if I do that, will it really cost me less (especially when I’ll have to absorb GB overage charges on my broadband plan)?
There are so many issues in play when it comes to the changing consumer video experience. Do you have anything you want to share on the topic? If so, please let us know at editorial@cartt.ca. Our deep dive into the so-called cord cutting phenomenon will begin next Wednesday and we’ll include your story, if you wish.
Also, we welcome any comments on the now-month-old Cartt.ca INVESTIGATES. Is it meeting your needs? What do you like? What don’t you like? Please let us know. We’re all ears.
