Streaming Sector Continues Its Steady Transformation Into Boring Old Cable TV
from the humpty-dumpty-back-together-again dept
Streaming video still provides some meaningful advantages to traditional cable: it’s generally cheaper (assuming you don’t sign up for every service under the sun); customer satisfaction ratings are generally higher; and users have more power to pick and choose and cancel services at a whim.
But the party simply isn’t going to last.
Thanks to industry consolidation and saturated market growth, the streaming industry has started behaving much like the traditional cable giants they once disrupted. As with most industries suffering from “enshittification,” that generally means steadily worse service at higher prices to appease Wall Street’s demand for improved quarterly returns at any cost (even long term company health).
As a result, Netflix has started acting like password sharing, something it advocated for for years, is a dire cardinal sin. Amazon now thinks would be fun to increase the number of ads it runs, charging Amazon Prime users even more money to avoid them. Consumers are paying more for streaming than ever as layoffs abound, streaming catalogs shrink, and the underlying product quality gets worse.
Companies are also increasingly chasing tax cuts and stock bumps via pointless megamergers. Early consolidation is having some somewhat superficial advantages, such as a growing number of bundles where users can sign up for multiple streaming channels under one price point. Something that sounds increasingly like, you know, cable TV:
“Disney and Warner Bros. Discovery recently announced that they’ll set aside their competitive impulses and team up, Avengers-style, to offer a super-bundle of their streaming services: Disney+, Hulu, and Max.”
Disney recently spent $8.6 billion to buy Comcast’s share in Hulu, so it’s not really “setting aside their competitive impulses” as much as it is just consolidation. Hunting and pecking through numerous streaming competitors to find who currently owns the rights to your favorite show certainly can be annoying. But the industry’s solution is generally going to be, over time, mergers and consolidation:
“But if bundles are back, why did we ever give up cable in the first place? That question stares me in the face every time I find myself in a hotel, enamored with the nostalgia of flipping from late-night talk shows to Family Feud to The Real Housewives of Salt Lake City to whatever Adam Sandler comedy is playing on Comedy Central.”
At this point, most of the same executives who ruined cable TV are now working in streaming. And they’re being driven by the same underlying motivation that ultimately destroyed cable TV: Wall Street’s insatiable need for impossible quarterly growth at any cost. It will likely do the same thing to streaming as it has done to countless other U.S. publicly-traded sectors (air travel, banking, insurance, telecom, etc.)
As the streaming industry consolidates and competition among streaming services wanes, you’ll likely see petty stuff like making it harder to actively cancel your streaming services (see: AOL, the Wall Street Journal’s online subscription, or cable TV). You’ll see weird new restrictions. You’ll see layoffs. And you’ll most certainly see a lot of completely and very broken mergers (see: AT&T Time Warner Discovery).
You’ll also, like in airlines and in telecom, see weird efforts to funnel you into higher and higher price points if you want the user experience you used to have.
I suspect most customers will still generally find streaming a better, more flexible value proposition than cable for the next few years. But all the financial incentives point in fairly twisted directions, driving bad decisions made in the pursuit of the impossibility of unlimited growth at preposterous scale.
Which will, in turn, annoy consumers, making streaming vulnerable to disruption by either resurgent piracy (something that’s already happening), or other services. And the cycle repeats.
Filed Under: bundles, cable, competition, mergers, streaming, tv, video
Comments on “Streaming Sector Continues Its Steady Transformation Into Boring Old Cable TV”
Something you learn as you get older (and more capable of paying for stuff than when you are a teeenager) is that you can do without anything. So on one end you have teens with no money that will pirate but they won’t become paying adults as many of us did for some time when streaming wasn’t full of bullshit. And on the other end you have fed up adults that are going without or just reverting back to pirating what seems to be interesting.
Way to go.
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All my homies are pirates.
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Pirating or streaming, is paying with your time or your money.
And for some, spending 5 minutes downloading a 2 hours movie may fell less bitter than paying a single dime to get a dumb movie in awful quality (or paying even if you don’t watch anything).
And let’s be honest, a lot of junk wouldn’t be watched if people would be charged even a small fee just of it.
Maybe pirating would be dead much after streaming…
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But which is which? If someone tells you the name of a movie or TV show, it’s probably faster to find the torrent and fire up the VPN than to figure out which streaming service it’s on. Nevermind if you’ve then gotta sign up for that service.
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Consider the recent video that Louis Rossmann put out, where a woman who paid thousand of dollars through her Telstra subscription lost access to the content she paid for.
At this point, piracy is something of a moral imperative to get companies to stop shitty behavior. Or, failing that, just doing without. You know, the one thing that pro-copyright content creators and holders have demanded.
They’re going to regret what they wished for.
Enshitification also includes lower resolution blockbuster movies
I first noticed that Prime was showing the latest Top Gun installment in 1080p.
Then it came to Netflix in 4k.
Last week Barbie dropped into Netflix, and surprise surprise, it’s 1080p.
I’m paying for the 4k stream on both “channels”, but there’s absolutely no guarantee that the offer actually includes the material as 4k, even if it’s a new release.
Don’t get me started on missing or unusable closed captioning, it’s just woeful. Sometimes I have the option to read them in Dutch, which is unexpectedly usable (I’m bilingual), but plenty of times that’s not an option.
Trailers rarely get any closed captioning, but which hard of hearing person watches trailers, so who cares .. right? (This is me being sarcastic.)
I wonder what it will take until someone actually fixes this. At the rate it’s going, I’m guessing an upstart entrant from India with a big audience might tip the scales.
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Where is “Barbie” available on Netflix? Here in the States, Max currently has the streaming rights (along with HBO holding the linear rights, both as a result of sister studio Warner Bros. being the film’s distributor).
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I’m in Oz.
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And let’s not forget deaf people, autistic people (closed captions help us too), and learners of ESL. Also, blind and partially sighted people should be given a humongous discount since there’s no audio description available most of the time.
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Actually, here in Uruguay Netflix offers English descriptive subtitles and Spanish regular subtitles, but no English regular subtitles.
So I must choose between “maldita sea” minced oaths or [dramatic music].
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And where in AC’s comment did they reference any country where English is not the main language?
I first read the title as “Screaming Sector Continues Its…” and assumed it was about maga/conservatives.
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They’re now shitting their pants in solidarity with Trump, if you’re wondering where that whole thing is at.
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The maga crowd is screaming alright, because their turds aren’t tapered like regular folk, thus their assholes slam shut in a most painful manner.
That’s what they get for not being well-rounded in their life experiences. Potrzebie.
(Bonus points if you can name the source of that final word.)
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On a bottle of aspirin sold in Poland, then subsequently popularized by Mad magazine.
The only one I will pay for is Netflix because they’re a third party. Which is also why the major studios pull their content. It’s probably a matter of time before the usual suspects buy Netflix too. At that point I will sail the high seas entirely.
Re: Netflix is safe from being bought
And Netflix makes their own content now so they’re not really third party, if that makes a difference.
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Netflix joined the MPAA in 2019, thus making them officially no different from the status quo.
I won’t pay. I gave up TV, except for local football, and discovered how much I enjoy reading and how many great books I’ve previously ignored. Amazon raised the price of Kindle Unlimited, too, but I get a lot more for my money…so far. They’ll enshitify that, too, and I’ll switch to whatever pirate source I can find.
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Like as in used paperbacks?
Support your local dead-tree reseller, they’re the last bastion of how things were done long before Wall St. started the whole enshittification thing.
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You know, there might be an entire building near you filled with books being lent out for free, with no permission from the copyright holders. Some people even have tiny versions on their front lawns. Books are pretty easy to find.
I'm pirating everything
Mostly books and music, some movies, classes, and magazines. An 8T external drive costs $130 and every time I fill one, I just buy another. (Eventually, when these are old and obsolete, I’ll buy 20T drives.)
I’d pay a reasonable price for this stuff, but nobody’s offering it at a reasonable price — and even if they were, the customer experience is AWFUL. Pirate sites make it so much easier.
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I pay under $20/month ad-free and sometimes well under, and the customer experience is perfectly acceptable. They’d have to get significantly worse to justify piracy.
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Which service are you subscribed to? Netflix?
I'll tell ya when the party is over
These bundles are aimed at selling more subscriptions to passive consumers and in Comcast’s case, in stemming defections to 5G. They don’t mean the end of ad-free monthly bundles. When and if that happens, I’ll just turn to piracy. As long as these companies offer a decent fair deal, I’ll give them some of my money so it’s all up to them.
So… What is the problem then? New replaces old, gets old, and gets replaced by new. Streaming services aren’t cars, they are merely faster horses that get treated like they’re space ships.
500 channels. 3 worth watching. Some executive will come up with the brilliant idea that adding more shitty channels is the way to make it better.
Don’t act so surprised people. This being the goal was obvious from the start.
Logic of the situation?
Lets Look at how much Cable TV Charges for Each channel. Even tho its Over $100, the major channels end up being <$1 each.
So then they got the internet and THINK they can get away with charging more? But you would think you would get away from SOME commercials? Nope, Just the Same 20-30 OVER AND OVER AND OVER.
I just want to charge them Internet fee’s. As the Commercials take up SOME of my bandwidth, Hardly ever goof up or slow down like Some of the Shows do. And Some you cant Skip.
Youtube on a Roku is Almost terrible. Commercials every 3-5 minutes. And they have something NEW that Isnt an advert, Called Sponsored. That seem to be able to take over what you are watching.
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Sponsored content goes back to at least the 1940s and probably predates commercials entirely. It’s a useful way for programs to get money without going through outside advertisers. Though some seem to do both, which I think should be a no-no.
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The advertisers MADE the programs. And in the 1940’s, only the rich would have TV.
Even in the 1960’s, before Color TV, B&W was still expensive. And still you will see TV sponsored by the Advertisers.
Now anyone can BUY TIME off TV, local, Area’s or national. And broadcast Anything they want, and add Advertisers that think they like your program.
Ultra-rich investors had better start eating their losses. The masses are becoming sick and tired of these such losses being passed down to them.
Nice Christmas present from Roger Goodell. Pay up.