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So what happens now?
According to January research from Parks Associates, half of the people who say they are interested in the new HBO service will drop their pay-TV subscriptions altogether, which, the research company says, could cause a 7% dip in subscribers.
Since those defecting customers would still be paying HBO -- but for the new online service -- that would be a blow for cable and satellite TV.
But because HBO would also pick up something like 15 million online subscribers who now don’t get HBO, it would be doing just fine. (Time Warner’s other cable properties, like TNT, TBS and CNN, presumably would feel the pinch, and no doubt that’s why those channels hooked up with Dish’s SlingTV new over-the-top service.)
From the article "UPDATING: 'HBO Now' The Big Test For Cord-Cutters?" by P.J. Bednarski.
There's simply no reason for Apple to jump into the crowded low-margin battlefield of smart TVs when it can sell its hardware at gross margins exceeding 40%. Steve Jobs reportedly once told employe...
The over-the-top devil is in the details. While OTT services are rapidly rising in use, so is consumers’ savvy in piggybacking onto their friends’ and family’s OTT subscriptions. More than 57%...
New research shows that TV homes with broadband are increasingly signing onto over-the-top TV (OTT) service -- with and without traditional pay TV services. In the U.S., 57% of current traditiona...
In related news, Parks Associates released its new report finding that 1.6 billion people worldwide watch online video on connected devices. That’s more than 20% of the world’s population. Seem...
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