We have covered how broadcast television is changing greatly.
There are many layers to this. Hollywood is on strike which is nearing the point of becoming laughable. One of the points of contention is the use of artificial intelligence (AI). This is going to be something that the industry embraces, whether the writers and actors like it or not.
Simply put, they are the Luddites of this generation. Sadly, things are going to end just as poorly as it did for the Luddites. Even if the major movie studios agree, the smaller, non-Hollywood entities are going to thrive. Technology is making it easier and less expensive to create feature films.
This is just one aspect to the debate.
Now, we have a major cable entity starting to speak out.
Cord Cutting
Broadcast television is getting decimated. Cord cutting is accelerating. This is driven by an older generation that is dying off along with the younger demographics turning to alternative mediums for their entertainment.
All of this is resulting in a massive shift. While Neftlix disrupted the video rental business, the tentacles are much wider. Streaming is now something all media companies are entering, most without profits. Nevertheless, it is of concern to Charter.
This is the first line that is affected by the cord cutting. Over the years, blackouts of certain stations took place during negotiations over the fees charged to the cable companies. This was passed on to the consumer when possible.
However, with the number of cable subscribers declining, this is turning into a major battle. The blackouts were temporary in the past, Not so much anymore. While the media companies still want increasing fees, the cable outlets are realizing they are losing more of their revenues while incurring higher costs.
This is unsustainable.
Charter Fighting Back
Charter is the first major cable company to publicly fight back and offer an alternative to the existing model. While the media companies want to suck as much out as they can, Charter is laying down the law.
Here are the highlights of what it is proposing:
*>Charter Communications CEO Chris Winfrey put media companies on notice Friday with his push for a different pay-TV model as cord-cutting accelerates.
Charter is pushing for more flexible terms and to offer ad-supported streaming services to its pay-TV customers at no additional cost.
The call for changes came as Disney’s networks, including ESPN, went dark for Charter’s Spectrum TV customers.
It is basically admitting that the existing model is doomed. Of course, the media companies are looking to turn a profit on streaming.
This is eating into the benefits provided by broadcast television. With more content showing up on streaming, including sporting events, the benefit of an expensive cable package simply is not there.
Here we see the second layer being disrupted. Not only are content creators looking at competition but so are the distribution networks.
By 2030
The rest of this decade is going to see the entertainment industry completely disrupted. We are already seeing it before our eyes.
AI generated "superstars" will likely be the norm. One top of this, we will see alternative platforms that take attention away from the traditional distribution channels. Content will be enhanced by AI, if not completely created by it.
Web 3.0 is an interesting proposition because it opens up an entirely layer to this industry. Payments are not going to be to the usual suspects and revenue streams will be different. All of this is entering virgin territory as tokenization, including NFTs start to enter the mix.
The major players will keep fighting but there are going to be challengers for the video world. This includes social media platforms which will keep expanding their offerings. We also have to keep an eye on the satellite communications, which also could start eating into broadband offerings, something that could also affect a company like Charter.
There are a lot of moving pieces. The only guarantee is that things will not be the same by the end of the decade. How things unfold is going to be interesting to watch.
