Cord cutters unite! Alphabet Inc.’s (NASDAQ:
If true, this deal would make CBS the first major television network to sign on to the new TV service to be housed on Google’s YouTube platform and set to premiere in early 2017.
Unplugged It Is
The new service, somewhat brazenly called, Unplugged, is designed to be an inexpensive option for consumers who haven’t subscribed to traditional pay-tv or cut the cord due to subscription costs.
The same sources told the WSJ that Google was also in talks with 21st Century Fox Inc. (NASDAQ:
Google’s goal is to be able to offer a “skinny” bundle of live TV channels priced at between $25 and $40 per month.
If Unplugged comes to fruition, Google will join others in Over The Top (OTT) Web video services such as Hulu, owned by Disney, Fox, Comcast and Time Warner Inc. (NYSE:
Others include DISH Network Corp.’s (NASDAQ:
Attractive To Networks
One reason OTT is attractive to major networks is the
Not only is this deal expected to give CBS more leverage in future negotiations with other distributors, it could attract many additional interested parties.
The Monetization Game
Key to investor buy-in for any company offering OTT,
According to Brett Sappington, senior director of research, Parks Associates, there were 34 OTT services in 2011. By 2015 the number had risen to 65. Now there are more than 120 OTT services in the U.S. and another 30 to 40 in Canada. All that competition has resulted in a number of different business models.
For example, DISH Network opted for a skinny bundle service tier via Sling TV, while BT Group plc (NYSE: