Wow! I’ve been doing this blog since 2011 when “cord cutter” was pretty much an industry insider term. When only nerds talked about using strange set tops to get streaming content.
But when I read that Pay TV lost 566K Subs in Q2 it would seem that cord cutting is now having major impact. So significant that the Wall Street Journal is using terms like “Media Meltdown” and blaming cord cutters for the the recent decline in both the Nasdaq and the Dow Jones Industrial Average.
Meanwhile, check out what’s happening over at Netflix were stock gains seem to be the reverse of the trend in Cable.
But the future is still hazy. We seem to be in a time of experimentation by the content providers. Are we really going to have dozens of “mini-bundles” or “skinny-bundles” as the new Pay TV model? I agree with the article – no single mini bundle makes sense for everyone.
The ideal of course, from the consumer point of view, would be “create your own bundle, i.e. a la carte. And not only a la carte but CHEAP a la carte. If my 10 or 20 channels add up to the cost of the traditional Cable bundle then what’s the point? By the way Sony’s VUE is said to be the first offering a la carte but details are sketchy.
Maybe a la carte won’t happen. It doesn’t work for restaurants so why should it work for Pay TV.
So what’s next? If I had to bet, I’d put my money on Netflix. They already have the infrastructure and a huge growing subscriber base. I see a partnership or two on the horizon….