With the emergence of several other new OTT services, the problem I see is that this is not cord cutting, it is cord trimming , because these new services are relatively expensive. Let’s look at the lineup of major new services going over the top in addition to some old standbys. If the average cable bill is $100 plus, the goal might be to keep the cord trimmer total to a small fraction of that. I’ll assume this time that your internet service is part of the equation since my “$100” number includes that.
Hulu Plus $7.99
HBO Now $15.00
CBS All Access $5.99
Dish Sling TV $20.00
Of course this is an extreme example which assumes no antenna and some content overlap in our OTT lineup. How can we improve?
The biggest chunk here is your internet service. If you can find a cheaper ISP you’d be on your way but unfortunately most of us don’t have such an option. And that’s the good news for Comcast/TWC still fighting to merge the two companies and become the dominant internet service provider in the U.S.
What else is needed? True a la carte. Of course CBS and HBO are single channel offerings but very pricey ones. Is a single broadcast network really worth $72 per year? Not when the same content is free over the air it’s not. See Antennas.
Cable operators have been telling us for years that a la carte would not save us money, and with the current state of the art they are correct. What would be nice is something like Sling TV but where the customer gets to pick his own 20 channels. Recent news broke about another mini-bundle to be offered by Apple, but like Sling this is probably going to be a take it or leave it package.
So does the emergence of all these OTT bundles signal a a possible breaking point in the current Pay TV model? Or is this just more of the same? Please share your opinion in the comments below…