How Media Companies Will Live when Cable TV Dies
Technologies that were once ubiquitous, once synonymous with television, are quite literally dying before our eyes. Cable and satellite TV continue to hemorrhage subscribers. And those subscribers are quite content to get their entertainment content through other means.
This trend is wreaking havoc on the trillion-dollar media industry, which is in urgent need of a fast fix.
But so many companies, from content creators down to their distributors, from multi-billion dollar media conglomerates and cable operators down to independent studios and broadcasters, are struggling to adapt, unsure how to react, or in outright denial that their business must evolve with consumers.
The fear of change is well-founded. These companies are losing subscribers, losing business, losing money. It becomes easy to see all things digital as a threat. The TV networks that once embraced Netflix now see the SVOD service competing with, if not cannibalizing, their traditional pay-TV offerings.
Orlando-based startup FreeCast is a different kind of company, with a mission to connect consumers with the content they love, and the companies that deliver it. This is done, not by pitting content companies against each other, or providers against consumers, but by creating a modern TV experience that benefits all parties.
TV for the 21st Century
For decades, television has changed little for consumers. The cables that carry those hundreds of channels into your home were likely laid decades ago. That cable box below your TV may be a bit newer, but its concept is just as old. The biggest change has likely been to your bill, which has skyrocketed at about double the rate of inflation.
It’s no wonder consumers are so fed up that what was once unthinkable has now become commonplace: cord-cutting.
FreeCast cuts out the middle-man by facilitating direct transactions between content providers and customers, solving what I’ve long called one of the dumbest problems in the television industry: that consumers fleeing odious TV providers cease to be subscribers to TV networks that they’d gladly keep paying for if given the option.
Out with the Old
By taking the cable and satellite TV providers out of the equation, many of the biggest complaints consumers have with their TV service go with them. Consumers will pay a lower price, paying only for the content they want, rather than the large and expensive bundles currently offered. But while consumers will pay less, the networks will be able to receive more; with most commanding under $1 per month in retrans fees, consumers would be willing to pay three to five times that rate for their preferred channels alone.
The poor customer service, clunky hardware, and occasional channel blackouts would all be a thing of the past. Consumers already own the devices that they want to use, each of which are more than capable of receiving and playing media via the web, without the addition of any hardware nor the associated rental fees. And instead of the high-stakes negotiations that frequently result in channel blackouts, consumers would be able to decide whether the price they’re being offered is one they’re willing to pay.
A Rising Tide Lifts All Boats
The current turmoil in the TV industry stems from adversarial relationships between the various players. Networks and content providers see each other as competitors, while distributors and consumers seem to be fighting each other for every penny.
That’s why consumers are ditching cable TV, why so much content is locked down without a pay-TV subscription, and why online television is such a disjointed experience.
But what everyone seems to be missing is that if they get out of each other’s way, the new television landscape can be better for everyone.
Content providers can build their brand and increase their subscriber numbers and revenues by not going through cable TV bundles.
Advertisers can deploy more targeted ads to online audiences, increasing the effectiveness of their marketing as well as the revenues of the content in which the ad appears.
Cable providers, who currently do an unsatisfactory job delivering television service, would be freed to focus on their bandwidth offerings, which are more profitable and much less costly.
Consumers get the service they’ve always wanted: á la carte TV allowing them to choose their own content, paying only for what they want to watch, with the ability to access it from any and all of their favorite devices.
Embracing the Future
While companies big and small fret about the changing TV environment, at FreeCast, we believe that future is already here. And a part of our mission is helping other companies realize that too.
The new TV landscape isn’t just good for all the various stakeholders, it requires all of their participation.
Content requires revenue, advertisers need an audience, and consumers want content; the more of each, the merrier. Lose one leg of that stool, or if major players aren’t on board, the whole thing falls apart.
To consumers, FreeCast represents the first complete online television experience, replicating the cable TV footprint by agnostically aggregating content from all of the web’s thousands of legal content providers.
But to the industry, FreeCast offers monetizable video solutions to all. Anyone with content to offer can do so through the FreeCast platform, which serves over 4 million subscribers across three brands.
FreeCast’s business model doesn’t resist the trends in the TV industry, it embraces them, generating revenue from consumers’ increased reliance on online video rather than suffering as a result. Any business can do the same, using FreeCast’s own infrastructure.
Like Rabbit TV Plus, SelectTV, and 2Buck TV, FreeCast’s media guide can be licensed and co-branded or made available as a white label service. This means any company with a user base can start making money from TV too. That includes traditional television providers who are losing subscribers, bandwidth operators seeking an additional revenue stream, even other companies with communities of users that may not be directly related to the media industry.
Cable and satellite TV have had a good run, but they’re on track to become legacy technologies like landline telephone service. Services like FreeCast’s, cross-platform aggregated media guides, are the MSOs of the future. Your company can become one today.
Visit FreeCast.com to learn how.
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