“The instant availability of streaming content online for much cheaper than pay TV is a constant issue for networks — and a flawed and reactionary strategy.” See VIP+’s two-part commentary on media’s streaming misfire
Ever since Netflix emerged as an entertainment force in the early 2010s, TV networks have been playing catch-up.
The traditional TV business was caught by surprise when Netflix took off. The irony of this was that in search of a quick buck, many networks licensed their older content to Netflix, which in turn helped to propel the service’s boom.In response, the emergence of Hulu as an industry-backed service was the first step in the erosion in value of the pay TV bundle and the beginning of TV’s efforts to cannibalize itself.
The instant availability of content online for a price much cheaper than pay TV has remained a constant issue for the networks, as well as being a flawed and reactionary strategy. Of the many streaming services launched in the last few years, only three — CNN+, ESPN+ and Fox Nation — have begun with a strategy designed not to cannibalize the core TV business and instead are services offering complementary programming to brand or genre fans.
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