Daily Call Sheet: Big Media In Trouble, ‘Tintin’ Reviews, Adam Sandler’s Movies Ranked
by John NolteBig Media Earnings Set To ‘Decelerate Sharply’ In 2013 As TV Becomes A Zero-Sum Game
1. Digital platforms (like streaming) are hurting broadcast and cable networks:
As costs rise, TV producers can’t expect to keep generating more cash from licensing agreements with digital streaming providers such as Netflix and Amazon. “Netflix may become more conservative in pursuing future content deals” to steady itself — the company saw thousands of subscribers bolt following the decision in July to raise prices by 60% for those who want to continue to stream videos and rent DVDs. Even if streamers are willing to pay, programmers may want to back off. They’re starting to see evidence that digital platforms take viewers away from traditional broadcast and cable channels.
2. People are sick of paying for cable channels they don’t want:
Programmers also can’t count on cable and satellite distributors to bail them out with higher affiliate payments. They’re eager to maintain their own profit margins, and worry that if they pass higher costs along to consumers then it will drive away even more subscribers. That’s why they’re talking about dropping weak channels or offering customers low-cost packages that don’t include sports services. Owners of “must have” channels probably will still be able to get what they want[.]
And the only reason this bloodletting won’t occur until 2013 is due to the billions that will be spent on political advertising in 2012.
Bottom line: people are sick and tired of paying for programming they don’t watch and/or despise. Why am I paying for MSNBC? Why am I paying for LOGO, E!, and OWN? I wouldn’t watch those channels on a bet. And to pay my satellite provider $50 a month just to watch Fox News and the occasional football game is outrageous.
My contract with Dish expires in 18 months. I intend to cancel it and get my entertainment from the Internet, Netflix Streaming, Blockbuster, and my embarrassingly large DVD collection. And if I have to wait a year to catch up on a season of “Mad Men” or another “zeitgeist” show, I’ll wait.







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