HBO considering offering online subscriptions to cable cutters.

Earlier last week, CBS also announced a direct to consumer service. What happens when 57 media producers offer direct to consumer subscription or advertising subsidized content channels?

The supply side dynamics are pushing the value of content down, as audiences consume more video and distribute their time across multiple screens. The result clearly shows consumer value for content on a downward trajectory. The interesting effect is that this is creating a value multiple for new and original video programming.

This could both accelerate vertical integration and further consolidation for Cable, DSL, Satellite service providers looking for facility and non facility based audience growth strategies.

With the cost of capital and economic outlook improving, it could be the tipping point to dust off playbook strategies and start shopping for deals.

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