During the last six months television has undergone a revolution: HBO launched HBO Go, bid online streaming not required to pay a subscription television and already operates in Latin America; CBS jumped on the bandwagon and announced its own digital subscription, CBS All Access, which for only $ 5.99 a month to view your live programming and hundreds of current and past programs on demand; DirecTV also begin a online video service to non-subscribers; and Apple is in the final stages of developing its own streaming service. The latest addition has been the powerful sports channel ESPN, which in January submitted its offer live broadcasts online, without having a cable service.
What chains Most viewed by Americans they are rushing to launch their online strategies to keep presence in homes is not fortuitous. The phenomenon that frightens large cable operators known as cord cutting, or ‘cut the cord’ , and aims to be the biggest change in media consumption since the birth of the Internet. (See also: Internet remains ‘stealing’ television viewers)
The 2013 marked a milestone as the first year in which the number of subscribers to cable United States recorded a drop Colombia follows the same path. Last year, subscriptions to cable fell 3 percent. 60.7 to 57.5 percent, according to the Dane
In fact, the use of online streaming grew 60 percent in 2014 , according to the total audience Nielsen Report while fewer viewers watched 12 minutes of television a day, on average. One in three said they would rather see the new series or seasons delayed
“We will see that the consumer will choose it all. The where, when and how to Time to see content, “said Fran Shammo, Verizon CFO, during the earnings call the company. He added: “If you look at the pay-TV packages today, most people only watch 17 channels on average. So the streaming is a way to give consumers what they really want. “
The demand on demand streaming content independent of cable subscription has generated a true ‘ big bang ‘on television, according to experts, who warn viewers now have more options to pay only for the programs you want to see. And best, for a price ten times lower. This, while the contents of traditional producers are mixed increasingly with alternative content that is accessed by YouTube and other channels.
A contagious transition
The success of platforms like Netflix largely explains this migration of Premium access. Since the American company launched its strategy of ‘watch it whenever you want’, ‘in the device you want’ and a very affordable price, it has gained more than 62 million users -five of them in Latin America, and already exceeds the HBO subscribers, the payment chain’s view there.
Its founder, Reed Hastings, even dared to say that traditional television will disappear in 15 years, and He warned that the channels that invest untold sums of money to have a space and frequency in the air and rotating around a rigid schedule, at certain times, are a thing of the past.
According to Hastings, the future is completely digital. “The linear television had an incredible career of 50 years, but the Internet TV is starting to grow. Clearly, over the next 20 years will replace linear television. Internet TV is the way people consume video in the future, “said the director of Netflix for its financial reporting.
The truth is that the transmission of content online (Over The Top) is a dynamic growing industry: the ABI Research analyst Eric Abbruzzese expected that this year the OTT grow 26 percent in revenue, and stay above 20 percent through 2019, he told CNN.
“ Consumers no longer want to pay for expensive cable TV packages when you can have the content that really interest them, and all their devices, lower price. The rise of systems such as Netflix and HBO Go is taking away market to cable operators, “Abbruzzese said.
And the business is going so well that Netflix, which dominates the market because you are leaving several upscale competitors like Amazon and Hulu, which offer demand programming anytime and anywhere.
The challenge of retaining subscribers
In 2013 almost one million families cut the cable in the United States. Between 2012 and 2014, cord cutters accounted for only a fraction of the total TV market, only 0.5 percent, but it was double those who retired last year , as Time magazine. And the trend continues to rise.
The price of cable operators is one of the main factors that are moving the industry toward Internet. But the owners of television fear the risk of cannibalizing their pay television offering subscription services independent online are too big, and it is not yet clear that they can charge a price high enough to be as profitable as agreements with cable TV providers, according to The Wall Street Journal Americas.
For example, CBS said that the ads displayed on streaming will be the same in the traditional channel. But for programming on demand, traditional 12 or 16 minutes of commercials is reduced by 25 percent.
That is why before rethink the problems of advertising revenue, some companies Cable and ESPN or HBO began limiting access to streaming services on demand to those who already have a subscription to your channel cable TV to hold on to potential cord cutters. Others like Comcast and Charter Communications betting create more segmented packets to end the problem of providing plenty of choice, but at a high cost.
But today it seems inevitable that online services elapse by an independent way.
Plus, when the trend indicates that young people, the most interesting for advertisers segment could leave the TV altogether. A Nielsen study shows that the traditional use of television among millennials, 18 to 35 years, plummeted by 10.6 percent between September 2014 and January this year, more than double the trend of previous years, while consumption of online videos is greater than ever.
According to comScore analyst, about one in six young people between 18 and 34 say have not seen any series on television in the last 30 days
Meanwhile, viewers are undecided, and as stated by the consulting Clearvoice Research, the majority is in favor of keeping both services.: online and cable. In a survey conducted on many cable subscribers would be willing to cut it, “only 22 percent of those who said they would finally did”
said Emily Keating, vice president of Media Research Clearvoice.
Between 1995 and 2005, the number of channels on cable packages in the US doubled in size and bills rose three times faster than inflation, according to a study from the University of Berkeley. The chairman of the FCC (Federal Communications Commission), Kevin Martin, noted that “the average subscriber cable was paying for over 85 channels not seen to get about 16 channels I wanted.”
Daniel Earnst, an analyst at Hudson Square Research, adds: “We are at the tip of the iceberg. We are seeing a lot of offers to make the content available on most complete online live, or segmented packets, which are laying the groundwork for a great unbundling “he says.
He concludes: “This year will be a year ‘amoeba’: see what life forms out of this, which survive or die, and we will see very quickly.”
Norway announced a ‘ blackout ‘of your radio FM
On January 11, 2017 will be a key day in the history of Norwegian radio, where its five channels will stop broadcasting analog radio frequency modulated in its (FM) to migrate to digital radio, after concluding that have already met the criteria for this technological leap.
The digital radio, which already has 22 national stations it opens space for other stations, because even has room for another 20 channels. More than half of households, 55 percent, and has a device with terminal adapted to receive this signal.
With the digitization of their national radio broadcasts, the country (5 million) expects to save $ 25 million a year, since the cost of the service of Digital Audio Broadcasting (DAB) is eight times less than the current standard transmission.
At about the advantage that the DAB system has an issue with higher audio quality and better geographical coverage adds.
“Listeners will have access to the most diverse and pluralistic radio content with new features and better sound quality,” said Culture Minister Thorhild Widvey, in a statement issued by the country Norse.
The example of Norway, this gesture will become the first nation to turn your radio on FM, will be considered by other countries in Europe and Asia, they plan to do the same jump to expand its radio spectrum.
IRENE LARRAZ
Drafting Sunday
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