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The vMVPD Talk with Philip J. Saweris

Average Household Monthly Expenditure on OTT Services

Average Household Monthly Expenditure on OTT Services

AI/Machine learning assisted actors, voices, story points, and the proposed effects of perfect content.

Parks and Associates is a business strategy think tank run by the brilliant mind of Elizabeth Parks. She posted an article to WFMZ.com and it got Philip J. Saweris and me talking.

It is all in the graph

It is all in the graph

Matt Rasamoto: Earlier this week was an OTT conference where CBS is still talking about the power of Broadcast and how OTT is a fad, and that the fans will eventually want TV like it was in 2000.
(Looks at above chart)
MR: Yeah, maybe CBS is betting on the rise of the vMVPD?

You get what you pay for

You get what you pay for

Philip J. Saweris: I wonder if there will be a point where there is streaming app fatigue where customers don't want to have 100 different streaming subscriptions.
From both a cost and the sheer number of streaming services.

MR: I think this is why vMVPD might be growing in popularity... HOWEVER:
Netflix is free with T-Mobile
Prime is free with shipping
Hulu is at worst $20 a month with Disney+, ESPN, and no ads.
Why would I want to go back to $145/mo for less content?

PS: True, the more channels/content type is included in a subscription the better

MR: I'd argue "Quality over Quantity" but only time can tell.

What the hell is vMVPD?

What the hell is vMVPD?

PS: Thx Matt for accepting my invitation to connect, I admit that I had to look up what vMVPD meant :)

MR: HA! So did I! Elizabeth through me for a loop when she sent me that diagram.
But (back to the conversation) I think the reason that the old Cable model won't work is that no one cares about niche channels. Pluto TV asking for me to subscribe so I can get "Awesomeness TV" isn't really a selling point. It begs the question, "how much would I pay to never see that again?"

PS: Yeah, it's just when I see a new streaming service pop up, I start rolling my eyes and wonder if I'm going to have to have 100 different subs to manage.

MR: Very true.

PS: Comcast is adapting and having those streaming services as part of its platform.

MR: But Netflix for the stuff your friends are talking about, Hulu because we kinda miss UHF, and Prime to remind us how bad UHF was.

PS: Haha, true, so true.

MR: Comcast is reaching for straws. I love Comcast's innovation spirit, but they need to decide what Xfinity is and nail that brand down soon.

PS: I think their main goal is that customers don't leave the box. So if you can go to the streams via the box then you have a one-stop shop.

MR: It's more complicated than that. Just like with Spectrum. It's a mobile service, so they'll do your phones and a home security thing and SVOD and AVOD and and and! There is a lesson here that we learned from AOL and quickly forgot.

PS: Interesting perspective.
So how do they shift from being a one-trick commodity pony?

MR: AOL did all your stuff, email, browsing, etc. But when the world learned that there were other services that did it better, we didn't mind switching to Hotmail, Ask Jeeves, etc.
All of a sudden, managing 100 subs was oddly better.

PS: Yeah, I see your point.

MR: Innovation is a cultural shift, not a business tool. You have to get the C-suite to innovate. This is why small businesses work and large corps just buy up what works and kill it.

PS: And innovate for the right identity and not for the sake of innovation.

MR: Exactly. Comcast needs to teach the old guard how to function in a lean methodology bubble.

PS: I wonder if they are trying to move to the old GE model where it's a conglomerate.

MR: Well, fear is the mind-killer.

PS: It's the everything-killer.

MR: They are going to fall back on what worked in the 90's OR whatever decade was innovative for them, and not what is [currently] innovative for the brand.

PS: I think if Comcast provided the ability for customers to select the specific channels they wanted it would be in a much better position against the streamers.

MR: These CEOs have yacht mortgages to protect.

PS: True...LOL

MR: Letting subs pick and choose will never happen. They can't understand that model. And who will look after "Awesomeness TV?" Dear God, won't somebody think of the children?!
Should Comcast make Xfinity a Youtube channel with a bunch of playlists? Should it compete against Netflix?
Walmart wants to compete against Hulu, does Comcast want to take on the Christian values of a high-end dollar store?
Who knows what will be right. I'd love to work with their team to help plot a course for the future. But I also need to clean out my garage so... 🤷‍♂️

PS: Def great examples you bring but it seems like a lot of companies are blending their lanes to capture more wallet share, whether it makes sense or not.

MR: Right now it costs less to make a TV series than to do a national ad campaign. I'd hope companies like Comcast would lean into that idea. Then again, maybe they don't need to do more than be a good pipe.

JS: Interesting, Comcast can definitely be a producer just like apple did with their tv+
Let me ask you a question...
Would it make sense for say Best Buy to offer to pay for a netflix subscription with a purchase of a smart tv?

MR: Best Buy should stay out of that game. Let Samsung fight it out with Netflix. Best Buy needs to focus on selling me physical stuff.

JS: But couldn't you argue that this would be a customer incentive/promo?
Just like t-mobile paying for my Netflix sub and actually Comcast pays for Netflix too.

MR: F/M/K - Best Buy is the "F," because I'm married to T-Mobile.

PS: What's fmk?

MR: Urban Dictionary can help you there.

JS: Ohhhh
I got it
No need to go there, I'm all up in that dictionary.

MR: It's crass, but the point is I don't want to have to explain my relationship with one brand to another brand I'm having a similar relationship with.

PS: True.

MR: Best Buy (I LOVE BB) just needs to be there when I want to buy stuff TODAY! I like to touch a TV box and whisper "soon" into the cardboard.

JS: HaHa, I thought I was the only one stalking them, almost restraining order.

MR: BB needs to cover the market that Amazon can't touch. The "my oldest fed the VCR a jelly sandwich, and I need a new VCR before the youngest wakes up."
If BB wants to dig into IoT, that'd I'd be interested in. IFTTT + BB could be a fun time.

PS: True.