Sunday, January 4, 2015

What do we want when it comes to video programming?


Once upon a time, we complained that we had limited choices when it came to video programming.  There was the MVPD firm (cable and/or satellite) in our market offering bundled channels on a take-it-or-leave-it basis.  Telecom firms (Verizon and AT&T) began to enter local markets about a dozen years ago as a result of the Telecom Act.  Their video offerings looked eerily similar to what the incumbents provided—channel bundles.  The twist, however, was that broadband technology now allowed firms to provide multiple services over the same distribution plant.  Consequently, telco and cable providers enticed customers with relatively small cost savings to sign 12 or 24-month contracts for double and triple plays bundling telecom and internet with their video service.   Monthly bills began to easily top several hundred dollars.  We asked…for what?  Did we need or want all of it?  We didn’t think so.  So, inevitably, every few months, we called MVPD customer service to get an explanation of what we were buying and the new promotions.  More often than not, we hung up from those calls more frustrated and confused.

A few years ago, new entrants came onto the market.  They weren’t direct competitors with distribution plant in the community, but competitors at the fringe that had the potential of disrupting the MVPD market.   Alleluia, we began to have programming choices!  While we would still need MVPD to view live sporting events, we now could assess our taste preferences and buy only the programming we wanted.  But, do we understand these new choices?  What do we get when we sign up for Amazon Prime or buy Roku?   Will we cut or skim the cord, but end up paying more under this new model?  Why is so difficult for us to know what we want when it comes to this market?  

Detroit News (12/28/2014) cord-cutters-forcing-cable-companies-adapt


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