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Subscription Fever Could Break

24 Oct, 2014 By: Stephanie Prange

Recent news is awash with content owners and producers breaking the cable cord and following the Netflix model of online subscription streaming. Companies such as HBO, CBS and Lionsgate are looking to the Web to create a new avenue to the consumer.

It is particularly interesting that both a broadcast network, CBS, and a major cable network, HBO, are looking to the Web to capture viewers. They represent the entrenched establishment of television programming. Both CBS and HBO have made fortunes via the traditional cable and broadcast route.

CBS Corp. Oct. 16 announced the launch of “CBS All Access,” a $5.99-per-month standalone subscription streaming service that doesn’t require a concurrent pay-TV subscription. That came on the heels of an announcement to an investor group by HBO’s Richard Plepler that the company will launch a standalone over-the-top video service not requiring a cable/satellite/telecom subscription (as opposed to the current HBO Go service) in the United States in 2015. It all makes me think of the World Wrestling Entertainment announcement at the Consumer Electronics Show last January. The wrestling company unveiled a grand plan to go directly to its consumers via a 24-hour streaming network, with a $9.99 a month subscription offering live PPV events, reality shows, original shows, documentaries, classic matches and more than 1,500 hours of VOD programming.

My question is what does this all add up to for the average consumer? Say I’m a wrestling fan ($9.99 a month) who wants to have access to CBS programming ($5.99 a month) with a basic Netflix subscription ($7.99 or more a month) in addition to my basic internet/cable access cost and goodness knows what other programming.

It seems to me that cord cutters may get more specific choices, but may end up paying more than what they would with your average cable package. As any restaurant customer knows, a la carte menu items often end up costing more than the buffet.

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