What’s In A Network Name? Linear TV Brands Still Looking for Traction Online

HBO added 2.7 million subscribers during the fourth quarter according to Time Warner Inc.’s latest earnings report, “about 800,000” of which, or just under one-third, came from HBO Now, it’s standalone over-the-top offering. That suggests that, barely eight months in, HBO Now has emerged as an important contributor to HBO’s overall subscriber growth.

Since HBO Now is sold direct-to-consumer at $15 a month, moreover, those subscribers are likely worth more to HBO on a revenue basis than pay-TV subscribers, for which revenue is shared with operators.

Time Warner officials pronounced themselves pleased with the results so far.

sports_centerWall Street, however, had a different view. Analysts were expecting as many as 1.4 million OTT subs by now and investors responded by sending shares of Time Warner down by nearly 5 percent.

To be fair, Warner announced its results on a day when media shares got slaughtered across the board and Time Warner’s losses were in line with other media victims. On the other hand, Time Warner’s results, along with Disney’s the day before, were major triggers for the sell-off, as investors continue to fret about subscriber losses among among cable networks as consumers cut the cord or shift to cheaper, skinnier bundles.

Disney got dinged for subscriber losses at ESPN, despite posting a record-breaking quarter on the strength of “Star Wars: Force Awakens.” Read More »

Trouble By The Bundle

Stop me if you’ve heard this one before:

“We understand the temptation for the FCC to take credit for resolving this impasse, but their intervention had nothing to do with it. We were very close to a resolution well before Chairman Wheeler got involved. In fact, the FCC process actually delayed the resolution, because it added more issues to negotiate, which lengthened DISH’s service interruption, not shortened it.”

That was Sinclair Broadcasting doing its best impression of Comical Ali, a.k.a. Mohammed Saeed Al-Sahaf, the hapless former Iraqi spokesman, insisting that the FCC’s unusual and urgent intercession in the retransmission consent negotiations between Sinclair and Dish Network had nothing to do with the outcome.

comical_ali_nothing_to_seeDish and Sinclair had been negotiating for two and half months without reaching an agreement, Sinclair had triggered the nuclear option by yanking 129 local stations from Dish subscribers in 79 markets, but within hours of FCC chairman Tom Wheeler blasting the blackout and summoning the parties to an “emergency meeting” at the commission, mirabile dictu, all issues were resolved and the blackout was lifted.

Yet one thing had “nothing to do” with the other. Hmm.

The actual substance of the dispute between Dish and Sinclair was no laughing matter for the future of the pay-TV business, however, nor was Wheeler’s intercession, whatever its effect. Read More »

Sling TV highlights Dish’s challenge

LAS VEGAS– At their press conference here during CES, Dish executives made sure everyone got the message about their low, low prices for the new Sling Television linear OTT service.

sling TV logo“The price will be substantially — and I mean substantially — below” traditional pay-TV offerings, Dish president Joe Clayton trumpeted. For just $20 a month — that’s right, just $20 a month~ — you can get a package of a dozen linear channels, including ESPN, CNN, Cartoon Network and the Disney Channel, streamed to your smartphone, tablet, connected TV or tablet without a pay-TV subscription, with a promise of “more [channels] to come.”

Add-on packages feature, kids, sports and news & information content will go for $5 a month, each.