Fox challenges cord-cutters by sticking TV shows behind paywall
arstechnica.com
arstechnica.com
It may not inject ads into the content like an online service like Hulu, but they're certainly making money from advertisers.
I configure something like TED (Television Episode Downloader) or similar to watch for shows that I like, have my torrent client download them, and have them copied to the fileserver all automagically and for less money, higher quality, and less bullshit (adverts) than cable, satellite, or hulu.
However, broadcast channels do make money through re-transmission rights that they sell to cable and satellite carriers. It might seem silly that your cable company is paying Fox for programming you can already get over the air, but the cable company also knows that their service won't be as attractive to you if the don't also carry your local channels without the need for an antenna. By confirming that you subscribe to Comcast, DISH Network, or something else, they know that they're receiving more revenue than just ads from you - they're also getting the re-transmission fees from your paid service.
There can also be the perception that if you're paying for TV, you're likely to watch it sometimes even if you use the internet TV for some of your TV watching. I'm guessing Hulu isn't getting advertisers to shell out as much money as traditional TV is right now. So, if you subscribe to cable or satellite, they might not be making a lot on what you're watching on Hulu, but at least they know you're more likely to be watching programming that they do get better money off of.
I'm definitely not defending the move and I don't subscribe to pay-TV myself, but I can understand why they'd make the move. Subscribers to pay-TV bring them revenues directly through the re-transmission fees and indirectly through a greater likelihood of watching non-internet programming with more ad slots that pay higher. If "cutting the cord" becomes the norm, it could mean lower margins and greater competition in programming for Fox and others. That's good for consumers, but I can see why Fox would try to stop that.
Hmm, but I think it's the local stations that make money on retransmission fees, not the networks. Though this is complicated by the fact that local stations are in some markets (though by no means all of them) owned by the networks.
And if this doesn't work, you're going to see a lot more content online. These companies just don't get it. It has less to do with money, and more to do with ease of viewing. If I want to watch Family Guy or Glee the day after it airs, I will google "family guy episodes online free" and find plenty of free options. Or I will go to torrent sites. Fox just lost me as a customer. I gladly watch the shows legally on Hulu when that's the easiest way.
Oh, no, not a whole eight days! I'll literally be a full week behind the latest pop culture phenomenae!
So once again, they are trying to push people to piracy so they can blame the dirty old pirates when nobody buys their shitty pay-extra-money-to-watch-ad-encumbered-shows-on-our-website service. Then there will be another round of laws mandating that we implant anti-priacy chips into all of our children to protect them from pedophiles. The G.O.D.I.S.G.R.E.A.T. Act they'll call it.
Every time I read an article about Big Content I fantasize about being killed by an errant meteor. Why can't I pay $1 to download a DRM-and-ad-free episode of The Simpsons?
If I could pay a monthly fee of around $20 to get all of the TV Shows I want to watch at any point in time (not even perpetuity but that would be nice) I would subscribe. Hulu+ comes close, but still doesn't have a lot of the back catalog I am interested in, or is hog tied by the content producers and can't make certain content available until 30 days after it has aired on TV (USA's show Suits for example).
I'd love to watch Game of Thrones from HBO, but the only way I can get access to HBO's online site is to have a monthly subscription through my cable provider... that makes my choice simple, TPB or don't watch them at all... either way HBO loses money.
I don't understand why the content industry doesn't see that if they help Hulu+ succeed that they too can start seeing more of the money from that. Instead of screwing over the "cord-cutters" cut out the middle-man (the cable company) and let me subscribe directly for a low monthly price.
I use my parent's HBO Go subscription which lets me stream their entire catalogue including new releases after it airs. HBO gets $15 a month from my parents for their subscription and I would gladly pay $15 a month for HBO-only On-Demand streaming.
If other companies followed suit, I would subscribe. I will pay $5 a month to subscribe to a show or $10 a month to subscribe to a channel. Yes, it can add up to be the same price as cable, but at least it's convenient and at least I'll have a choice of content.
Am I alone here?
You are right though, instead of being worried about the old revenue streams, they should find a way to maximize their profit from cord cutters, and maybe this is what they came up with...