Time Warner had announced last week that they would sell the Internet only subscription next year for its HBO. As a follow up from HBO, CBS has also announced its rate of programming online to be $5.99 per month. The companies, namely Dish Network and Verizon are also planning to sell out the web based TV subscriptions like the other companies.
The media and cable companies have not been lobbying the fact of selling TV channels in the form of a la carte. The reason has resided in the financial non-feasibility. However, the resistance has lowered down now and the companies have started thinking the other way round. The cable companies are of the view that selling the channels a la carte would actually benefit the customer.
When the user buys cable in a bundle, it can cost him up to $80 per month with hundreds of TV channels. However, he may not be interested in most of the channels and here comes the importance of selling the TV channels a la carte. However, the cable companies had not started something similar because they believed it would not be financially possible and feasible.
Netflix and other video streaming companies have enjoyed great success lately and this has pushed these cable companies to sell individual subscriptions for the channels. The companies are also scared of the fact if the young generation does not buy TV subscription at all, they will be in for a big loss.
HBO and CBS have decided to cut the middlemen that are present at selling the subscriptions and deal directly with the customers. This would also help the Americans save an ample of money. For example, if the customer needs to see “Game of Thrones” series, it could cost him approx $20 and he can simply buy the same by avoiding paying for the full subscription that includes wasteful channels too.
The idea of HBO and CBS to deal directly with the customers is great, but it could have some bitter effects.
A few of the companies will suffer losses and hence they will try to make up for the revenue compromised resulting in a problematic situation. These companies could also bother or block the online video streams. In the same light, Netflix complained in the beginning of the year that its customers were finding difficulty in watching movies through internet connections from Verizon, Comcast and other companies. The problem was, however solved after Netflix paid a hefty sum to the broadband companies in order to let them connect their network to Netflix’s system.
If there are proper conditions in place, the decision by HBO and CBS could bring a lot of happiness to consumer’s face.