Streaming MVPDs are not any more sustainable than regular MVPDs

[osewalrus]

Good article on the underlying economic problems of simply shifting the cable model to  online. The problem is the major network cost is too high for the amount of time people spend watching TV. This distinguishes NETFlix, which is VOD, from things like DIRECTV NOW.
https://redef.com/original/the-artificial-fantasy-of-virtual-pay-tv?curator=MediaREDEF

Comments

[dsrtao]

If I understand it correctly, the cost of bundled programming content (NBC/ABC/CBS/PBS/FOX/CNN/CSPAN/.... 150 channels and nothing on) exceeds the fees that people are willing to pay for that content, even when the distribution overhead contributing to that cost is reduced to next to nothing.

That sounds like a classic partially-substitutable goods problem, with the usual answers being A: increase the perceived value of the goods; B: reduce the price paid for the good; C: sneak out in the middle of the night.

Anything wrong with that analysis?

[osewalrus]

Basically correct. It is addressing the industry argument that simply shifting to streaming is going to save the existing business models.