“Cutting the Cord” If Only for A Day

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I thought it would be an interesting experiment. I’ve read quite a bit lately about people who have been ditching their cable or satellite companies – “cutting the cord” as it is called – and just going with what can be found on their computer or other streaming services. For the last couple of years, I’ve owned a Roku 3 (a great Christmas gift from my lovely wife) and use it quite frequently, especially during the baseball season. As an experiment, I thought I would give it a day’s trial, just to see if I could “cut the cord” for a simple 24-hour period. You might be surprised about a couple of things that occurred.

It is something that is happening more than you think across the United States and around the world. Estimates are that as many as 10% of U. S. homes are disconnected from traditional cable or satellite service. A 2014 survey by Mike Vorhaus of Frank N. Magid Associates for a trade conference estimated that 59% of U. S. households paid for a subscription video-on-demand (VOD) service and Netflix was 43% of that group. Finally, that same survey from Vorhaus noted that, among 18-34 year olds, television as the primary medium for entertainment was down to only 21%. Two years later, imagine where those numbers are…

My experiment, however, didn’t get off to a great start. First of all, getting up in the morning and turning on the television was distinctly out. As I prepared my son’s lunch for school, I absentmindedly hit the television in the kitchen for CNN. Just as quickly, I shut it off as I reminded myself what today’s experiment was to be about. After I returned home, it was fortunate that I had some work to do and a doctor’s appointment because I wasn’t concerned about what was either on the television or what I was missing from the news. This was good and bad, in my opinion.

Being able to get your work done – especially for someone like myself who works from home – takes a great deal of discipline. Sure, part of the reason we do it is for the flexibility of the situation (my wife and I also save a great deal on child care), but to be able to look at what you have to complete from a work status and be able to achieve those goals while sitting in your abode is something that all people enjoy. The down side is that, yes, we do work from home so we can have a few extra niceties, such as the television on in the background; I especially like CNN because it isn’t something that you have to concentrate heavily on and, in the cases of “BREAKING NEWS,” it allows you to keep on top of what’s going on in the world.

After the doctor’s appointment, I tried to use one of the new features from CNN, CNNGo, which brings their live broadcast to your computer screen. As I halfway listened to the news that Speaker of the House Paul Ryan was “absolutely, positively NOT” going to be the GOP’s savior at their convention in Cleveland (sure, Paul…just like you “DIDN’T WANT” the Speakership), it suddenly cut off and I brought up the window. Sure enough, I reached a situation that many do when they try to break away from their cable service.

To be able to access CNNGo (and, as I was to find out later with my son, to be able to access Disney Junior), you had to have an active cable service account. While CNNGo asked for several of the prominent carriers in the business – names such as Charter, Xfinity, DISH Network and others – they didn’t come up with mine:  Time Warner Cable. As such, I couldn’t WATCH CNNGo on my computer – and my son could not watch Disney Junior through the Roku 3 later in the day – because the companies cannot come to a financial agreement so that CNNGo or Disney Junior can be offered on the computer or Roku (you can, however, access them through the Time Warner app that is available through the Roku…figure that one out). This is one of the reasons that pisses off many with the whole “cutting the cord” thing; in reality, you’re not cutting the cord because, at the minimum, you have to at least have minimal cable service to be allowed access to certain channels, whether it is on the computer or through such a streaming device as a Roku.

Roku4After this revelation, the next problem arose as to the “break away” from the cable company. I sat back and watched, through Poker Central, some of the action from the Global Poker League on the Roku 3 during the afternoon and got a bit restless. Taking a look around, there were very few free streaming channels that you could find to actually watch any type of substantive programming (PBS is good for this and free, but fun isn’t the first thing you think of with PBS). To be able to have any selection to be able to choose from, you had to have access to something like Netflix, Amazon Prime Video or Hulu Plus, each of which charge a monthly fee for access.

These three are the “power brokers” in the new streaming world (“streaming” being whether you watch on your cellphone, your computer or through a device like the Roku) and could have a seismic impact on the shape of the television world in the future. They have already had an impact on programming, beginning to offer their own scripted television shows that have garnered critical acclaim (at the expense of the traditional television networks). But would people actually move to a piecemeal system like this over the traditional cable system?

Some studies suggest that the bundled channel system that cable companies use actually save customers money rather than cost them more, and there’s some evidence to suggest that they may be right. If your cable company offers a basic cable package for $20 per month (and that’s about as base as it gets in many areas, pretty much offering the local channels and a few other stations like the Weather Channel, CNN, ESPN and others), that is normally what people will watch; where people get irritated is when they have 300 channels and nothing is on. With the streaming outlets, you pay somewhere along the lines of $9 a month for Netflix or Hulu (Amazon Prime is $99 per year), but you might have to pay $4.99 for this station to get access over your streaming device and another $4.99 to access another station…it begins to mount up if you have several access points.

Then there is the factor of live sports. Pretty much every sports league has some sort of live package where you can watch every game from the league (except the National Football League; at this time, the NFL Sunday Ticket package is still the domain of DirecTV, although you can pay to be able to watch, on a tape-delayed basis, the NFL games the next day). These packages can range in cost up to $129…if you put that together for baseball, basketball, hockey and hell, let’s say the NFL comes around and does it too, it’s over $500 per year. That’s not counting any NCAA collegiate games, NASCAR, Formula 1, Indy Car, Major League Soccer, Premier League…you might be getting my point by now.

ESPN Plaza - Bristol CT

Then there’s the monolith known as ESPN. Losing money left and right nowadays (as much due to the competition from outlets like Fox Sports, the CBS Sports Network, the NBC Sports Network and insane fees to the sports leagues for broadcasting rights), ESPN has been considering taking the route of Netflix into an “a la carte” service. According to a 2015 article from The Motley Fool, 40% of people would be willing to pay $10 per month for a “Netflix” version of ESPN. The problem is, the Fool states, that ESPN would need at least $15 per month from subscribers AT THIS TIME to maintain its current standard of performance revenues. This isn’t even looking into the future, when the marketplace is further crowded and the bidding wars for rights fees for athletic events gets even more bloodthirsty.

By the time the Yankees game against the Toronto Blue Jays ended tonight on the Roku, it was time to end the “cut the cord” experiment. I had proved I could do it – there’s enough out there and there is the capability to still watch what the television networks provide, if you’re willing to wait in some cases – for at least a day, but any longer might be a stretch. Perhaps in a few years, when the streaming networks have become more like the cable companies and are actually offering “channel packages” and the cable companies have gone truly “a la carte” to allow their customers to choose ONLY the channels they want, then it would be good to try it again. Right now, I’ll dance between the two worlds quite happily – and enjoy them both immensely.

The Coming Downfall of Broadcast Television

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There have been some things that have been consistent in the average person’s life when it comes to entertainment. The theater has been around since the Greeks and Romans put plays on in their massive outdoor amphitheaters and musical concerts have almost the same longevity. The change has come in the way that those things – acting and musical performances, along with sporting events – have been delivered to the populace.

In the really “old days,” the only way to partake of these artistic or athletic endeavors was in a live setting. With the creation of radio, it became possible for people to join in on a concert or sporting event from several hundred, even thousands, of miles away. When television came along in the 1920s, the picture was added to the radio broadcast and became the preferred way for people to witness events from thousands, even millions (remember the moon landing in 1969?), of miles away. As technology improves, however, many of these avenues are becoming extinct or may become extinct over the next decade or so.

First to go was radio. The normal terrestrial radio – replete with commercials – lasted for over 100 years before the advent of satellite radio came along. At first, many said “I’m not going to pay for radio,” but, as time, technological improvements and personal choices came to the fore, people decided to pay for satellite radio. Today, SiriusXM and its array of channels challenge terrestrial radio across the board in the ability to deliver breaking news, sporting events and musical events and artists’ recent musical output. It doesn’t bode well for the future as more terrestrial radio stations become “automated” – basically eschewing live DJs for stale canned programming to reduce costs – and the satellite stations boom, basically destroying an industry 100 years or more in the making.

A similar situation is happening in the world of television. Just a little younger than the radio industry, television has been a staple of U. S. households since it was popularly mass-produced in the 1950s. Over the past 60-plus years, television has not only brought to those around the world important historical moments – the moon landing, the fall of the Berlin Wall, the standoff at Tiananmen Square, the bombing of Baghdad in the first Gulf War – but has also brought hours of entertainment through movies, musical concerts, comedies and dramas.

Those traditions are quickly changing and nothing shows it more than the recent announcements from two powers in the television world, one a major network and one a cable powerhouse. It was announced on Monday that CBS Television Studios would be bringing a new entry into the Star Trek universe come January 2017. While not commenting on what tack the new series will take, it does have the power of Alex Kurtzman, who produced the 2009 theatrical version of Star Trek and 2013’s Star Trek Into Darkness, behind it.

The crossover of Kurtzman from the Big Screen to the Little Screen isn’t the important change, however. CBS has already stated that the premiere episode of the new Star Trek series would be broadcast on its regular network airwaves. Following that, the premiere and each new episode would be seen on CBS’ brand new on demand outlet, CBS All Access, and would not be broadcast on the traditional airwaves ever again.

After this announcement regarding the CBS/Star Trek partnership, it was announced on Tuesday that longtime cable television giant HBO and former The Daily Show front man Jon Stewart had joined forces for him to issue commentary during the upcoming 2016 Presidential campaigns. So what will be the name of Stewart’s new show that will premiere next year? It won’t be a show and it won’t be on HBO, fans; it will be “short form digital content,” or online efforts, with Stewart offering commentary that will appear over HBO’s on demand and streaming outlets HBO NOW, HBO GO and other arenas.

What do both of these legendary entries do? Sidestep the traditional broadcasting arenas in favor of online or “streaming” outlets, signifying that there is a coming downfall of broadcast television.

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Since the beginning of the 21st century, this transition has been pretty easy to see coming. Netflix wormed its way in with its creation in 1999, initially offering only DVDs to customers as an alternative to the “big box” movie rental outlets such as Hollywood Video or Blockbuster Video. Not only did Netflix crush those outlets with its business plan, they soon grasped onto the idea that they could do television just as well as the traditional broadcast networks. Such now-acclaimed dramas and comedies as House of Cards and the resurrected Arrested Development got their start in 2013 on Netflix and the acclaimed Orange is the New Black premiered in 2014. Since these and other shows premiered, Netflix has earned over 50 Emmy nominations and won 11 times.

After Netflix showed the way, there were many who followed. Hulu and Amazon Prime Video now have their own streaming video networks in addition to their usual movie rentals and they have made their impacts not only on broadcasting but on awards shows with their own original programming. Even the traditional networks, such as what CBS has done above, have entered into the digital arena.

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If you’re going to have the non-traditional broadcast sources, you have to have a way to get it to the people. With Roku, ChromeCast, AppleTV and software on the Xbox and PS4 video game systems, there are ways to use an internet connection to pretty much see anything that might appear on network television that same day or within a couple of days of a program’s original broadcast (if it is on the network’s digital outlet, then the next day). The combination of these internet streaming options plus the drive to sever the ties with cable could very well doom the traditional network outlets and cable television.

Cable television, as traditionally offered by Comcast, Time Warner and several other outlets, offers different packages for homes in their areas. Households can pay anywhere between $20 (for the barest bones package that basically only gives the local broadcast networks) and $300 (for every bell and whistle available, not to mention internet access and/or phone) for cable television programming. If people were able to make the choice to buy the channels that they like and want – say a Netflix here, an ESPN there, etc. – and pay drastically less than what they pay for cable, people will do that in a heartbeat.

Cable broadcasting will more than likely end when those device providers – Roku, ChromeCast and the others – start providing “bundles” of channels at a low price for their viewers (this might also be the saving grace of broadcast television in that they could negotiate rights, much like they already do with the cable companies, with the streaming providers). These “bundles” could offer local television station programming, a sports channel or two, a movie channel and a news channel for next to nothing. You could have a sports package, a movie package or a news package to go alongside the local channels that can be picked up with a digital antenna. Then there is always the fallbacks of Netflix, Hulu and Amazon that could bring the programming.

There is one problem that could be present for those looking for the utter devastation of cable. Live televised sports still provide the most viewers in television – look at the numbers for football’s Super Bowl or for soccer’s (the rest of the world’s football) World Cup. The individual leagues have been looking to this, however, and have come up with streaming options that could easily make their way to a streaming home.

Major League Baseball’s MLB.tv is something that is offered year round (usually using the feeds from the local team’s affiliate) and the National Football League recently broadcast one of their games between the Buffalo Bills and the Jacksonville Jaguars not only from London, the United Kingdom but also exclusively streamed over the internet. If the individual leagues can figure out a way to remove the broadcast networks from the equation and monetize their offerings, they will be the first to “cut the cord.”

And this doesn’t even add into the mix the expanding world of mobile programming, or watching traditional television on your cellphone…

The moves by CBS and HBO (and others, to be honest – the situation is rapidly changing) to bypass the traditional network broadcasting routine for straight-to-digital broadcasts signifies a seismic change, a strange new world for the future of television broadcasting. Will the other companies in the industry catch up? Will the cable companies be able to make adjustments in their offerings? Will the streaming channels and the devices that provide them take the idea of “cutting the cable” all the way to the logical fruition of cable’s destruction? The coming years will provide the answers.