Last year around this same time August 2013, I wrote a piece on The future of TV. Basically, I presented a way where TV will be transformed into a A la Carte system and the networks are already transitioning to this system. As of today, content is king in the TV business with Netflix, Amazon, and major networks creating TV series that consumers in the future will crave for. This is the future and I would like for my visitors to revisit my post on how The future of TV looks to going in the direction of a new way of viewing television. That new service may indeed be “A la Carte subscription or pay networks directly” and for consumers it cannot come any sooner. A la carte service has been mention in the media and socially for a while now. One can say why has this service not been an option for consumers, well one can speculate but I would not. Cable companies or satellite companies tend to not agree with the a la carte model due to the revenues they receive from the bundle packages. As a consumer, I enjoy my Direct TV, but giving the premium package I receive I rarely watch 10 to 15 channels a month and this is where the majority of consumers are. Why are we paying for high bundle packages when we tend to not the 200 plus channels that are provided. Well if you think about about it, we are paying for a model that has the big viewing networks asking more from cable and satellite companies to which low viewing networks are left to negotiate at lower cost, thus the bundle package. For a while now, I have started to notice a trend and that trend has become more and more apparent. If you are reading this, take a look at your mobile devices and tablets, there you would see more and more networks are offering there service to consumers via apps. These TV apps are popping up left and right, and as of now some of them offer live viewing as long as you are a subscriber to any of the featured networks they provide. This something as a investor and consumer to pay close attention too. Think about it, networks could in the future have that option to provide live viewing to consumer via apps as a subscription service, just look at HBO go they are already ahead of the curve. As you can see above in the picture, these are a couple of apps that have live viewing within the apps. One app that surprised me and I have been using to watch occasionally has been the Bloomberg app witch has live viewing free with commercials. With the majority of networks tied to contracts with major cable and satellite companies, as of now a la carte or buy a subscription within apps is not happening anytime soon, but one can dream and see where the future is. One thing to keep in mind, the ecosystem of Apple ($AAPL) and Google ($GOOG) is there for the break though of TV app subscription model or via a la carte. The much anticipated Apple TV that has been discus and has further been quiet by the media may be the break though that’s coming. The late Steve Jobs said he has cracked the TV subscription model, and I can now possibly see a tad bit on how Apple can actually provide TV service to their consumer via apps. The future for networks is here, are they going to get ahead of the curve or are they going to continue to fight whats right there for in front of them (Bundle). I say, if I were head of a TV network, look at CBS and Time Warner, as a CEO of a network why deal with higher fees from cable and satellite companies, when you can go directly to the consumers and provide the same service via apps or from your website. As a consumer, I would definitely, buy a CBS app package ( CBS TV, The CW, Showtime, The Movie Channel, etc for $4.95 a month) or (lets say ESPN for $9.95 a month) or (Fox Network and its sister stations for $4.95 a month) and the same for NBC. But as you can see CBS, ABC, NBC, and FOX can easily use Apple and even Google ecosystem to provided this to consumers and as I a consumer, I would pay for this easily.
Examples of the App TV service: (service I would pay for)
Note Packages include sister networks, The CW, USA, etc the networks that the major companies own.
CBS package: $4.95
FOX package: $4.95
NBC package: $4.95
ABC package: $4.95
NFL Network $9.95
Total cost per month: $44.65 plus taxes
Wow who wouldn’t pay for something similar to this, come on Networks get ahead of the curve.