Wednesday, April 13, 2016

Podcasting's lesson for cable television providers and channels

This week I want to indulge in a detour from podcasting but still within media as a field. A few years ago, as part of a graduate class on innovation in media business models, I presented a proposal for a la carte cable television packages that aimed to split the difference between consumers’ interest and the interests of the cable companies.
 
The plan was to offer packages of 25, 50, 75 or 100 channels – but not pre-selected by the provider. Consumers could assemble a custom list of channels. The intention of this plan was to slow down “cord cutting” (customers dropping cable in favor of online streaming video services and sources), and keep customers on board by offering greater choice in programming, within certain price points. The plan wouldn’t go as far as offering single channel choices for $1, $2 or $5 a month (depending on the popularity of the channel) but instead require the customer to pay at least $25 a month (or some price point close to that) for 25 channels, to guarantee some level of income for the provider in return for services.
 
To date, I haven’t seen or heard of any cable provider offer anything like this. The only attempt to retain or recover lost customers I’ve seen is a Time Warner Cable offering lost customers a streaming service for basic broadcast channels through a Roku box at no more than one tenth of the price of typical cable box service. But this doesn’t extend to or include any basic cable level channels, except perhaps C-SPAN, because that’s a public service on some level.
 
The Roku box or Google’s Chromecast could be ways for cable companies to offer the kind of a la carte plan I proposed in the course. Several basic cable networks, on their own, already offer their programming as apps on Roku boxes and smartphones, but these are predicated on already having a cable subscription being used at home. HBO and Showtime, as premium channels, have now made themselves available without a cable subscription, but the basic cable channels are dependent on the carriage fees, so it may take them a lot longer to go independent. Cord cutting apparently hasn’t yet hit enough of a tipping point to make them follow HBO’s lead.
 
The industrial interests of the cable industry remain too strong. They’re more entrenched and dug in than something like Howl, covered last week and earlier in entries of this blog, the podcast aggregator that is battling to succeed with a collected programming offering that in some ways is like a cable TV package with varied channels – if you consider the audience for more serious Slate or NPR style audio fare completely removed from the audience for stand-up comedy.
 
The podcasting medium doesn’t seem ripe or varied enough yet to make a paid a la carte model realistic. But that model is still one that could become necessary for the cable industry once it can no longer rely on inconsistent strategies used by different cable channels – USA, FX and others do allow cable customers to view their programs through apps on both mobile devices and the Roku box, while TBS and others only offer smartphone apps that are purposely do not offer the ability to transmit through a Chromecast device to traditional home flat screen TVs. Cord cutters might not be bothered to pick up on channels whose online versions are not as easy to access.
 
Podcast of the Week
 
I had meant to do this a few weeks back already, but I hope to give a listening recommendation with each blog post, based on what I've enjoyed most in the past week. For the first one, go check out the iTunes podcast versions of Opie Radio from January 7 and 8, where Opie, Jim Norton and a few other comics dissect the Netflix documentary series "Making A Murderer," in their own special way.

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