The TV “streaming” has become popular thanks to services like Netflix made available to the public prior seasons programs to see how much they want and whenever they want.
NEW YORK – the golden age of online TV could be in danger. TV “streaming” has become popular thanks to services like Netflix made available to the public prior seasons programs to see how they want and when they want, while Hulu offers episodes of the current season. Now some TV companies are stepping back and not give them immediate access to the programs.
The big fear is that by doing TV “streaming “too nice for the spectators, they reduce or cancel their cable service. Cable companies and satellite channels are paid billions of dollars a year to them. In turn, production companies earn significant revenue from license fees they pay channels.
Cancel services could jeopardize all these agreements while the public Internet and earnings may not be sufficient to offset the loss of earnings from traditional television.
Time Warner Inc., having channels and production companies, it has explored the possibility of retaining some of its programs like DC Comics superhero “the Flash” and “Supergirl”. If they do, viewers would have to wait years to see the latest episodes online, but now usually available within a year after its telecast.
Hulu could be next. The Wall Street Journal recently reported that Time Warner is in talks to invest in Hulu and told the owners of the company that wants to restrict the episodes of the current season, Hulu offers even the day after its release.
It is unclear how will these restrictions. Time Warner and Hulu did not respond to requests for comment. Time Warner could reveal more of its digital strategy on Wednesday, when it reports quarterly earnings.
The tremor emanating from Time Warner is the latest example established groups wishing to protect their partners and agreements, appeals to viewers or not.
Hulu has slowed down in recent years. When it was launched almost a decade ago the service offered most programs of its parent chain day after it was passed. Now many of the Fox and ABC programs require a subscription to Hulu or cable service to watch the next day. Otherwise, viewers have to wait eight days, or a month in the case of “So You Think You Can Dance” on Fox. In the case of Fox, Hulu is now only the last four episodes, not five, free .
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Meanwhile, online services have ventured to create their own productions. Netflix has won awards for original series like “House of Cards” while Hulu ordered a fourth season of “The Mindy Project” when Fox canceled it. Original programs help to differentiate services and could reduce the impact of any withdrawal of traditional television programs.
But for now these services have focused on giving viewers the opportunity to see what is on traditional television and one less reason to tune in.
“to some extent you can not the genie back into the bottle, “said Anthony DiClemente, an analyst at Nomura Securities. “Once people will get used, that is the expectation,” he said.
Traditional TV services cable and satellite have experienced a slow decline for years, partly because younger audiences do not see, you prefer Internet options. The decline is not large enough to put in an immediate risk to the cable and television companies, but are taking note. And the figures mask the fact that many subscribers prefer cheaper packages with fewer channels.
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“What we see is a constant game of pulling the rope,” said John Buffone, an analyst at NPD Group .
in the “boom” of services like Netflix and Hulu, Buffone said television companies review how they can make more profit by “streaming” .
the changes can be noticed especially in Hulu, which is owned by the major American networks (Fox, ABC and NBC) threatened by the way people watch television. Hulu has differentiated itself by offering faster than its rivals episodes, so make the wait longer limit its appeal.
“DNA Hulu have been recent episodes of TV shows, “said Glenn Hower, an analyst at research firm Parks Associates.
the obvious anxiety in companies TV is common in any industry that has faced what Harvard professor Clayton Christensen calls “the innovator’s dilemma”, which occurs when established businesses see their lucrative businesses are affected by innovative rivals with cheaper alternatives and at least initially, less profitable. Large companies may not welcome these innovations without cannibalizing their own reliable sources of income.
Seen this way, Hulu has been a very effective partial measure. His greatest achievement may be used to people having to pay for internet TV. It was further established when piracy was rampant, so it is not an achievement either.
Although Hulu still offers programs with commercials can be viewed for free, users increasingly pay $ 8 a month for mobile phones and TV equipment by “streaming” full current seasons. By the end of April, the last time Hulu presented its figures, was 9 million paying subscribers, an increase of 50% over the previous year. Netflix was 45 million in the United States by the end of 2015, an increase of 14%.
But the traditional business remains significant and will continue for years. Even after falling 1% last year, 98.3 million US households will subscribe to a cable or satellite, according to figures from research firm MoffettNathanson.
As a result, older agreements “streaming” may not offset what TV companies could lose if that big business continues to shrink. The odds that companies cable and satellite pay the networks and stations to present their channels are estimated at 60,000 million dollars this year, an increase of 6% over 2015, according to research firm SNL Kagan.
according to this view, it makes sense to hold on to the old and well-established partners: cable companies.
Published Tuesday February 9, 2016
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