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The Future of Cable TV: Why Disney's Flagship Channel is Looking to Stream

The Future of Cable TV: Why Disney's Flagship Channel is Looking to Stream

  Cable television may be on its way out, but it hasn't disappeared altogether. Even with streaming services becoming more prevalent, some viewers still prefer traditional broadcast TV. sports and news programming is helping keep linear television alive, while many baby boomers remain committed to cable, which may reduce the rate of cord cutting as predicted. 1. Affordability Cable operatorss must acquire licensing from program material owners in order to use it within their cable system, enabling them to charge an individual channel or program (sometimes known as "pay-per-program") a fee that varies based on market power, number of channels carried and local programming (referred to as "distant signal equivalents"). To prevent vertically integrated cable systems from unfairly favoring their affiliated video programmers over non-affiliated ones, the Commission requires each cable system to allocate no more than 40% of its service tier to affiliated video programmers. Furthermore, rules were implemented requiring cable operators to pay video programmers retransmission fees as compensation for having their signals distributed through cable television systems. But due to streaming services' exponential growth, sports leagues and content providers have begun reconsidering their long-held commitments to traditional cable networks - for instance, NFL Thursday Night Football games now air exclusively on Amazon Prime Video and NBCUniversal Peacock streaming service. Investors have also adopted a more conservative view regarding the profitability of streaming services, evidenced by their muted response to Disney+ earnings results this week. While Disney claims its service will become profitable by October 2024, Wall Street remains skeptical due to the company's steep losses. According to The Wall Street Journal's report that ESPN is actively considering shifting towards streaming, that could change dramatically. ESPN would then directly compete against streaming rivals Sling TV and YouTube TV for sports viewers' attention; currently ESPN charges cable and satellite providers high fees to access live sports content from them; creating its own standalone streaming service may compromise this privilege. 2. Variety When searching for a TV service provider, it's essential to take more than channels into account when choosing one. Consider features such as parental controls, simultaneous streaming capabilities on multiple devices and DVR capacity as well as video conferencing services if applicable. Luckily there are cable alternatives which offer all these features so you can find something perfect for your home! Major cable and satellite providers continue to offer plans and services despite recent cancellations of cable-TV services, such as NBC. Their https://crazyrichasiansmall.com standalone streaming service allows users to watch live and on-demand programming from NBC as well as its regional affiliates such as ESPN (ESPN 2, ESPN 3,ESPNEWS and NBA TV in some markets) as well as accessing college sports as well as professional ones live! They even have ESPN+ which gives access to college and pro sports! Hulu provides an affordable service that allows users to stream shows, movies, and live TV. Unlike some subscription streaming services, its base package includes some traditional cable channels while premium options can be added on for extra value. Plus, Hulu often runs deals to help save on its services! There's fierce competition in the cable TV space, so it is no surprise that more people are turning to alternative streaming services. Not only can companies reduce prices but some are making their customer service better by making it simpler to cancel or change services - helping them compete with rival services while attracting new ones. 3. Reliability Cable television services typically are offered in tiered packages with differing rates for each tier. Basic service requires at least all over-the-air broadcast signals required by must-carry provisions of the Communications Act plus local commercial and public access channels selected by a cable system operator; other service tiers may include pay-per-channel or pay-per-program services (commonly referred to as "pay-per-view") that may also require payment; they are often overseen by local franchising authorities and, until March 31, 1999, by the Federal Communications Commission ("Commission"). Disney (DIS) reported quarterly earnings that exceeded Wall Street expectations during its quarter ending June. Revenue in Disney Parks, Experiences & Products division reached $3.2 billion while streaming revenues also increased significantly. CEO Bob Iger announced that Disney intends to invest further in these businesses while exploring ways to license its vast library of characters and franchises to other platforms. Furthermore, Iger hinted that ESPN may soon offer direct-to-consumer streaming options. No secret exists of Disney's traditional linear cable channel's struggle to attract subscribers, not only due to people cutting cable/satellite packages but also because sports fans crave watching live games on dedicated platforms. While streaming video industry growth has seen exponential progress recently and is projected to keep rising as consumers transition away from traditional cable and satellite subscriptions, Disney and other major media companies are taking a cautious approach, betting that eventually COVID-19 and other factors will prompt more consumers to abandon expensive bundles for cheaper online-only options. 4. Flexibility Cable television provides subscribers with unparalleled flexibility by enabling them to select which channels they watch. Furthermore, most MVPDs provide various parental control devices that allow subscribers to filter TV viewing by rating and channel - some devices even enable parents to restrict access to specific movies or shows that may not be appropriate for children. While many cable companies have moved toward offering more content through streaming video-on-demand (SVOD), many still believe traditional television networks provide valuable resources for consumers and may help drive growth over the coming years. Disney CEO Robert Iger has made no secret that ESPN remains a core business and believes sports remain one of the few things keeping customers coming back for more. SVOD services have experienced rapid expansion over recent years, particularly during the COVID-19 pandemic. Major players such as Netflix (NFLX -0.87%), Walt Disney (DIS -0.42%) and Warner Bros. Discovery (WBD) saw their subscriber numbers skyrocket during lockdown periods. Investors, however, have begun demanding that Disney demonstrate a return from its streaming operations - after spending billions and still incurring losses on these products. This week, the company appointed Robert Daniel as its President of Domestic Entertainment - which encompasses both its streaming and broadcasting businesses. Daniel will be responsible for making sure their streaming platforms become profitable while overseeing all content distribution, sales and advertising initiatives. Given the challenges the streaming business is currently facing, Daniel must help turn things around as quickly as possible. 5. Convenience Cable television services deliver television programming directly to subscribers through coaxial cables strung across poles owned by telephone or electric utility companies, private rights-of-way or transmission facilities that belong to cable operatorss, or other infrastructure. While some systems only offer basic service tiers like basic, pay-per-channel or pay-per-program options - and sometimes broadcast signals too - others also distribute multiple programming tiers at various levels. Cable television regulation occurs both at a state and local level. Some states, like Massachusetts, regulate cable through an agency like a public utilities commission while other jurisdictions like Vermont have local franchising authorities that oversee local franchise operators as well as pole attachment disputes between cable providers and utility providers. Disney, ESPN's parent company, has long discussed transitioning its flagship sports channel onto a direct-to-consumer streaming service; according to The Wall Street Journal (WSJ), however, serious steps are finally being taken toward making this happen. While no date for its debut has been given by the company yet, Disney executives are already working to prepare and broker deals with pro sports leagues to facilitate its move into streaming video services. Disney may soon launch an ESPN streaming service, becoming the first major sports network to do so and likely prompting other large entertainment networks to do the same in order not to miss out on revenue sources. Such an action could hasten cable's death as consumers could more easily select just those channels they desire without needing to purchase an expensive bundle.

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