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Streaming Video's Big Wednesday
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If you're a big fan of over-the-top streaming video services, then you're probably over the moon regarding two news items announced Wednesday:
* The NFL and Yahoo! are partnering for a free web-only broadcast of the Oct. 25 game between Jacksonville and Buffalo, which will be played in London. The game will be available to view on any device with an Internet connection via Yahoo!, Yahoo! Sports, Yahoo! Screen and the Tumblr blogging platform (if you live in Jacksonville or Buffalo, you'll be able to see the game via the usual broadcast channels.)
* CBS Corp., owner of Showtime, finally released details on its plans for letting viewers watch the No. 2 pay-TV network's offerings without a cable or satellite subscription. Starting July 12th, you'll be able to access Showtime movies and programs such as "Homeland" and "Ray Donovan" on any Apple device or Apple TV for $10.99/month. The first month will be free if you sign up through Apple, and if that sounds familiar, it's because HBO did the same thing in April when it launched HBO Now, its own OTT service which costs $14.99/month. With both HBO and Showtime OTT's, other delivery platforms such as set-top boxes, smart TVs and gaming consoles will be added to the mix later.
For those who haven't binged on over-the-top news, OTT is all about accessing media without having to pay Internet service providers such as Comcast, DirecTV or AT&T U-verse. Content from third parties such as HBO, Showtime, Hulu, Netflix, Amazon Instant Video, etc., use the Internet to get to your home, tablet or smartphone, but they don't come from the ISPs - they sit "over the top" of those existing networks.
Wednesday's announcements are the latest evidence of traditional business models slowly adapting to changing consumer habits, digital disruptions grudgingly accepted by media conglomerates. Cable/satellite subscribers who have been griping for years about wanting a la carte options vs. paying for channels they don't watch are finally being heard, but not because ISPs and broadcasters are suddenly magnanimous. They have their own evidence: it's called "cord cutting."
It's also doubtful any of those big media giants are going to lose a lot of money by offering up cheaper monthly subscriptions to their content; CBS Corp. president Les Moonves crowed recently about how Netflix and other OTTs pay him a lot to air past seasons of his company's programming. Yes, bundling channels together is better revenue for ISPs, and content studios like those owned by CBS liked that arrangement. But both will probably figure out new digital advertising options that can be more targeted.
The NFL OTT news is more surprising, and offers greater risks to both viewers and the league - which may explain why it chose the Jacksonville/Buffalo game. It's two franchises that are in rebuilding mode, and it's a 9:30 a.m. ET kickoff from London's Wembley Stadium (that's 6:30 a.m. on the West Coast). Streaming video is susceptible to slowdowns and other technical glitches when lots of people tune in, so the viewing experience could be up for grabs. Still, we're talking about a sports league that is second only to the dragon Smaug in jealously guarding its treasures - namely, its live games and highlights, as well as the hoard of gold it gets every year from networks via broadcast rights contracts. Did we mention the Oct. 25th game is free to watch?
The NFL should get extra points for experimenting with a digital-only broadcast that could point the way to more offerings, and new revenue streams, in the future. And while we're mangling sports metaphors, Yahoo! CEO Marissa Meyer really should get the game ball with this partnership. Despite the fact that her company is still trying to figure out new strategies for ad revenue, mobile and content, she keeps everybody talking about her company with moves like hiring Katie Couric and with deals like this one.
Even though Yahoo! Sports has one of the top fantasy football services out there, the $20 million that Yahoo! reportedly paid to broadcast the London game is a bold move. Given the previously mentioned technical difficulties, that's essentially a $20 million beta test of Yahoo's live streaming capabilities.
The best part of all this isn't just the fact that viewers get more options. It's always fun to watch the signal-callers in Big Media and Sports scramble like Seahawks QB Russell Wilson to find their footing in a shifting digital landscape.