PlayStation Vue Limited Launch

[+Asmodai MVC]

It looks like Verizon is rocking the boat with FiOS likely in response to Sling, Vue, etc.

 

They've made a smaller Base channel package and a series of add-on packages that includes Lifestyle, Entertainment, News & Info, Pop Culture, Kids, Sports, and Sports Plus.  For $54.99 you get the base package and your choice of two add-on packages and if you want more you can add additional add-on packages for $10 each.

 

Source

 

The problem is in doing so they've divided up the content from individual providers into multiple optional packages which while that's may be what consumers want is NOT what the content providers want (and why Sling and Vue didn't do it).  So it appears a fight is about to begin.

 

Source

[soniqstylz]

Found this nugget while reading an article about ESPN suing Verizon about said package.

 

ESPN is by far the most expensive basic cable channel for providers, costing them over $6 per subscriber.  On average, a channel costs providerrs $0.14, although many of the major channels like USA, TNT, and Fox News hover around $1.

 

http://blogs.wsj.com/numbers/how-much-cable-subscribers-pay-per-channel-1626/

 

 

That kind of tells me that some of these new services do have some wiggle room on pricing, especially if they're not including ESPN as part of their deals.  It also explains why ESPN is not part of Vue.

[+Asmodai MVC]

Found this nugget while reading an article about ESPN suing Verizon about said package.

 

ESPN is by far the most expensive basic cable channel for providers, costing them over $6 per subscriber.  On average, a channel costs providerrs $0.14, although many of the major channels like USA, TNT, and Fox News hover around $1.

 

http://blogs.wsj.com/numbers/how-much-cable-subscribers-pay-per-channel-1626/

 

 

That kind of tells me that some of these new services do have some wiggle room on pricing, especially if they're not including ESPN as part of their deals.  It also explains why ESPN is not part of Vue.

 

I think that's a bit misleading.  The median cost per channel of $0.14 is artificially low because it doesn't take into account the the provider would never sell that channel alone for that price.  It's that low because there is one or more anchor channels in the bundle that generate most of the providers revenue and allow it to offer smaller channels for super cheap.

 

For example A&E, ABC Family, and History channel are probably pretty cheap (they're not on the list) but they come from Disney in a bundle with ESPN, Disney Channel, ESPN2 which are more expensive and on the list above.  A&E, ABC Family, and History ride on the profits of ESPN, etc.  If you take them out of the bundle then their price would likely go up... potentially significantly.

 

Similarly TNT and TBS likely serve as the anchor channels to the Time Warner package (based on that chart above) and likely provide the profit so they can sell Cartoon Network and CNN for cheap (who are not on that list).

 

It's kind of like Shopping malls that have big anchor stores that draw people to the mall and allow little stores inside the mall to thrive despite the fact they wouldn't be able to draw in enough customers to stay in business if they were stand alone stores.

[soniqstylz]

If anyone cares, Showtime is available nationwide, $8.99/mo if you have PS+. First month's free. For comparisons sake, HBO now is $14.99