As 'Star Trek: Discovery' Shows, The Streaming Exclusivity Wars Risk Driving Users Back To Piracy

from the full-circle dept

On one hand, the growing number of streaming services has been a boon for users looking for a less expensive, more flexible alternative to the bloated cable bundle. On the flip side, as a growing number of streaming services emerge and broadcasters begin launching their own services to bypass the middleman (Amazon, Apple, Netflix), we're seeing a rush toward more and more exclusive content deals. Forcing the consumer to hunt and peck through an ocean of ever-shifting licensing windows is already confusing, but siloing content across numerous, cumulatively-pricey services also risks driving consumers back to piracy.

Case in point: CBS recently launched its own streaming platform: CBS All Access. The service, which costs $6/month with ads and $10/month without, provides access to CBS' full roster of shows, but saw fairly tepid growth initially. But CBS recently announced that the new Trek series, "Star Trek: Discovery" will be exclusively available early to members of the service moving forward. This move did, rather unsurprisingly, result in a single day sign up record for the service, at least according to CBS:

"Tonight’s premiere of Star Trek: Discovery on CBS All Access drove a record number of single day signups at CBS’ digital streaming subscription service. No specific numbers were reported, but the network claims today’s stats outstrip the previous record spurred by the 2017 Grammy Awards in February."

And while that's all well and good for CBS, many consumers already subscribe to numerous streaming platforms, and may find shelling out another $6 to $10 a month just to catch one show a poor value proposition. As a result, fairly non-surprisingly, the new Trek series wound up being heavily pirated on BitTorrent networks (and that was with the first two episodes being aired on broadcast before the real exclusivity period kicks in):

"While the premiere of Discovery was broadcast on CBS' free over-the-air network, later episodes in the first season will be offered exclusively on CBS' streaming video service. CBS hopes this will help the network build CBS All Access into a top-tier streaming service. But there's a risk that it will simply encourage more people to pirate CBS' flagship show—especially since some users who signed up for the service have been reporting reliability problems on social media."

Over time, CBS may feel it makes sense to pull all of its content and programs off of widely available existing services and central repositories, locking them behind their own exclusivity paywall. That's effectively what Disney just announced; the company will be pulling all of its content from Netflix so it can offer Pixar, Star Wars and other popular titles exclusively through its own platform. Comcast NBC Universal similarly decided to pull all NBC content from Netflix to house it exclusively on Comcast owned Hulu. Begun, the streaming exclusivity wars have.

Many executives will proudly believe that this kind of direct to consumer offering only makes sense. And for outfits like ESPN that were blindsided by cord cutting the logic makes sense to some degree. But in forcing consumers to sign up to too many disparate services (at $6 to $20 each) just to get the content they're looking for, there's a real risk that millions of consumers will once again find piracy the simpler, less expensive option. A shame after the better part of a decade it took to drive users to these alternative, "legitimate" options.

Many broadcast executives are the type to subsequently learn few if any any lessons from this likely spike in piracy, and will likely lament how they "gave consumers what they wanted and they still pirated content anyway." To be clear the rise in streaming alternatives is a good thing, but the same hard lessons being learned by the legacy cable sector still apply here: users are looking for simplicity and value, and by forcing users to sign up to more than a dozen fractured services just to get the content they want, the industry risks providing neither.

Filed Under: copyright, exclusivity, piracy, silos, star trek, streaming
Companies: cbs

Disney Pulls Content From Netflix As Users Face An Annoying, Confusing Rise In Streaming Exclusivity Silos

from the drowning-in-monthly-fees dept

On one hand, the increasing number of independent streaming services is certainly a good thing. This increase in competition is finally starting to apply pressure on incumbent cable TV providers to offer greater programming flexibility and to compete on price, even though many cable and broadcast execs falsely believe they can ignore the threat and do the exact opposite. But as everybody and their mother jumps into the streaming game, we're facing a new threat: the rise of fractured exclusivity silos that make consumers hunt and peck to obtain their favorite programs.

Case in point: if you're a fan of a particular program in the modern streaming video age, you first need to check to see if that program or film is available on any of the half-dozen services you may subscribe to, be it Hulu, Netflix, Amazon, CBS All Access, YouTube TV, or any of a myriad of other options. That in and of itself can prove fatiguing on your patience -- and wallet if you're trying to save money over traditional cable. You've then got to see if that content is still actually available, since content licensing results in titles being added and removed in what are often illogical availability windows, adding another layer of confusion.

Now, things are poised to become even more complicated in that regard. Wanting to cut out the middleman, many broadcasters (like CBS, FX or AMC) are busy pursuing their own streaming services, pulling their content from existing available services and forcing users to sign up for yet another monthly subscription. For example, if you want to watch CBS's upcoming new Star Trek: Discovery TV show, your only option will be to sign up for CBS's $7 per month All Access service. Don't want or can't afford another service? Your option is to either go without -- or to pirate the program. Guess which option many choose?

A more recent case in point: Disney announced this week that the company would be pulling its content from Netflix in order to launch its own streaming video service:

CEO Bob Iger told CNBC's Julia Boorstin Disney had a "good relationship" with Netflix, but decided to exercise an option to move its content off the platform. Movies to be removed include Disney as well as Pixar's titles, according to Iger. Netflix said Disney movies will be available through the end of 2018 on its platform. Marvel TV shows will remain. The new platform will be the home for all Disney movies going forward, starting with the 2019 theatrical slate which includes "Toy Story 4," "Frozen 2," and the upcoming live-action "The Lion King." It will also be making a "significant investment" in exclusive movies and television series for the new platform.

On one hand, if you really like Disney content, this may not be a horrible thing for you. On the other hand, if you're only interested in a few Disney titles but already feel you pay for too many streaming services, you could find yourself annoyed. Users are, it goes without saying, cutting the TV cord because they're tired of the poor value proposition traditional cable TV represents. It's not entirely clear you can call it real pricing evolution if you replace one bloated, giant cable bill with an ocean of smaller charges that ultimately cost you the same if not more than your old cable TV subscription.

And while it's not entirely clear how many monthly fees and subscriptions users are willing to tolerate, it is abundantly clear that broadcasters and cable companies intend to push their luck and figure out the answer. Not many seem to realize that should they push too hard and cordon off content into an ocean of annoying exclusivity silos, the end result will drive users back to the simplicity of piracy. And that's a particular shame given all the work it took to wean consumers off of file trading services like BitTorrent and on to "legitimate" monthly streaming subscriptions in the first place.

There's a fine line here as we shift from traditional cable to over the top streaming, and it's precisely the kind of line the traditional cable and broadcast industry loves to trip face-first over.

Filed Under: content, movies, silos, streaming, tv, video
Companies: disney, netflix