
Streaming TV disruption is everywhere -- and hopefully improving
financial fortunes for everyone.
But offering consumers too many pricing options could be an irritating thing for some traditional TV-network based companies.
Walt Disney says Dish
Network is going too far with its virtual (internet) pay TV network service Sling TV when it comes to offering short-term purchases of TV network bundles -- “mini-bundles" -- say for a day, a
weekend, or a full week.
Disney has filed a lawsuit against Dish Network asking the court to require Dish to comply with its programming deal.
This means
consumers could just buy a small bundle of over-the-air/cable networks for a weekend -- just to see some college football games, including ABC and ESPN.
These mini bundles can cost just $4.99
-- which is much lower than that standard, month-long pricing for a pay TV service. In this case $45.99 a month for Sling TV.
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Typically, a "monthly price" for traditional pay TV bundles is in
line with how individual streaming platforms are priced, on a per-month basis.
Now, this also comes with the flexibility given to subscribers to opt in and out per month.
Disney took
legal action to say those mini bundles go too far (as well as in violation of its current agreement). It means less pay TV subscription revenues coming their way.
Right now, there is still
strong -- although declining -- cash flow coming from their traditional broadcast/cable TV business, which still gets billions of dollars in retransmission and carriage revenue from broadcast/cable TV
network bundles.
Perhaps 10 years down the road, when and if connected TV/streaming becomes a more dominant and higher cash flow-producing businesses -- perhaps then those traditional TV-based
networks groups will offer more promotional-based short-term bundles.
Currently, however, financial conditions are still in transition -- especially as the big, promised streaming/CTV business
matures.
Take a hint from Warner Bros. Discovery when it comes to boosting its premium streamer "Max" -- going back to the hopefully bigger "HBO Max."
Few business executives are
looking for anything "mini."