hello everyone welcome back to case
studies with the biz doc this week we’re
going to talk about the distribution of
content from traditional cable TV to the
new over-the-top services and what it
means for you whether you’re doing a
training video for your company and
you’re putting it on youtube and you
want to distribute it or you create a
series of brand-new content that gets
picked up by new distribution in new
ways last week we did a case study on CB
insights and I talked about how that
innovative company in New York was
taking all the data of startups around
the world whether they’re digital
startups financial startups doesn’t
matter what industry it’s not just tech
guys in Silicon Valley synthesizing that
data and making new content many of you
asked what’s happening the old school
content and I don’t get it with new you
know million channel internet subscriber
services and new things that are showing
up like on YouTube such as the value
team at channel you’re watching now
what’s going on with this I said well
it’s a long story of distribution but
there’s some important lessons in it
that we can take for you and me number
one content is king will always be king
Bill Gates gets credited with saying
that and I agree with it to this day now
in terms of dollars in Wall Street in
America distribution of television
content with King as Comcast and Time
Warner and Dish Network and DirecTV
dominated bringing that content to your
home through cable or satellite well
content is king in the way it’s
distributed is moving around and there’s
a couple examples of how the old kings
of content who didn’t change have fallen
from their perch so let’s take a look at
what happened in cable and satellite
through the eyes of content and let’s
think about what you would do with
content for your new youtube channel as
you look at a broadening distribution
network for your content over the top
Toms word of the day
over the top meaning through the
internet through a Google chromecast
device Apple TV or Roku box into a
traditional TV that is no longer
connected to cable and satellite before
I get into this let’s talk a little bit
about the US market I know many of you
are watching around the war
old but we’re just going to look at the
US market for now where these stats are
but it is applying very similarly in
markets around the world specifically in
Japan Australia and Western Europe right
now in the United States it is said 25
percent of households today no longer
have a traditional $50 cable and
satellite subscription they maybe have a
mini plan to get their local channels
like here in Texas local channels are
important to alert you to tornadoes and
weather alerts although your phone will
beep and tell you about that as well
but a lot of times local news is still
important for certain things with those
many plans they add to it maybe a
Netflix subscription or a Hulu
subscription but the traditional hundred
channels of cable television sitting
there on the couch just flip them
through each one 25 percent done and
let’s take a look at where it went this
is a little graph right here in the
middle looking at cable subscribers
United States in 1990 there were 51
million of them in 2016 there’s 52
million of them in mean time went all
the way up to 66 and what all the way
came back now it’s been replaced by a
little bit of Telecom subscribers like
Verizon FiOS in the United States and
AT&T u-verse which is known as Telecom
subscribers and that’s made up some of
it but along the way people of
increasingly especially in the younger
new generation say me and you and Gen X
and Gen Y Millennials represent for
getting their content new in different
ways ESPN the news really is that their
content once was the dominant of sports
they no longer corner all the markets of
it they had a hundred million
subscribers in 2010 and they are about
to crash under 80 million subscribers
2017 2018 in the next year or so that’s
pretty terrible that’s like that’s more
than a 20 percent loss of subscribership
and you’ve seen them laying off a lot of
the talent that we almost used to know
and love today a great guy I used to
John Clayton has been let go by ESPN not
fired but in the sports world we say
you’ve been cut nonetheless you can see
that you know if you don’t adapt your
content it doesn’t matter whether it’s
cable or satellite or over the top guess
what you lose subscribers so this is the
traditional system and now let’s get
that out of the way per second now let’s
go look at where it’s going where it is
going is to a new generation called OTT
over the top and it comes from there’s a
lot of people that say that it came from
going over the top of the house down
into it or over the top of the
traditional networks wherever it really
came from it doesn’t really matter over
the top means it no longer comes through
cable or satellite cable used to be in
the United States at least whatever
cable was in your neighborhood that was
the one you got because there wasn’t two
or three or four choices at the curb
there was cable or after 1994 you could
get DIRECTV but that was it and DISH
Network of course well now guess what
the internet comes into your house you
get moderately fast internet and thanks
to digital compression you choose your
systems and a lot of them now have built
packages that look a little like cable
TV collections of channels you used to
like and a lot cheaper rate because
they’re not paying for all that
equipment coming into your house they
don’t dig trenches for cable now they
still got to pay the programming people
a lot of money an ESPN is still getting
$7 of subscriber give or take and ten
years ago they got $5 a subscriber so
maybe the cost of ESPN is part of their
their downfall
I wanted downfall but their slide when
you still have 80 million subscribers
it’s not exactly downfall but you sure
as hell got to fix what’s what’s going
on here and stabilize both your content
your delivery and your style and your
business practices needless to say these
over-the-top solutions emerge we have
sling that’s owned by the Dish Network
dish which was a competitor of DirecTV
run by a billionaire and a guy named
Charlie Ergen who once tried to buy a
company that I was part of and I got to
know Charlie very briefly at that time
and he is not a guy to be trifled with
it is not surprising that Charlie Ergen
even though he’s one of the old-school
cable and satellite guys with the Dish
Network is taken sling and has made it
one of the leaders among the over the
top providers that sells you a whole
basket of products then there’s
playstation view coming through your
playstation again a basket of channels
for 30 40 dollars maybe a little less
per month DirecTV now is in there so
DirecTV saying hey we’ve got all these
wonderful subscribers we’ve got this
content for satellite well what if a new
subscriber comes up and they just want
to do it over the top we’ve got the
contents and nonetheless they merge
DirecTV now and then there’s hulu hulu
was owned a little bit by everybody as
they were all putting their toe in the
water on this library of digital
download content now including live
channels and they’re actually owned by
Comcast Fox Disney and Turner and of
course Comcast is NBC so you’ve got them
out there claiming 12 million
subscribers now sometimes this may be a
$4.99 pack where you can just download
things these are talking about packages
nonetheless here comes over the top as
long as you have faster in it to your
house you connect it to your computers
you connect it with a chromecast or a
Roku or an Apple TV to your TV and
you’re ready to go you go and select one
of these to get the channels that you
want and a lot of them people are
selecting only a few channels that they
want I only want the Food Network or
cooking or I’ve got kids like I do I
just want Disney and sprout and
Nickelodeon and things like that I don’t
need all the rest of this we’re going to
do other things with our time
nonetheless very there you have it
what’s interesting is Juniper Research
juniper a very very well respected
market research firm has predicted that
by 2019 when you add all the players
that are up here and more including
people like Netflix that have 77 million
subscribers but it’s just for their
their movie programming it’s not a
basket of channels at least not yet
they say there’ll be 330 million
subscriptions
and if you think about it that’s
basically the population of the United
States so it’s pretty amazing what’s
going to be happening here so when you
think of over the top going where it is
the 330 million subscriptions I got one
word for that it’s like damn look at
that
that’s as new places to get content so
what does it mean for your content if
you’re building a content driven
business that maybe you’re going to
educate or just entertain or inform in
some way but you have a vision for
building a high quality channel like
Patrick that David has done the value
tainment channel that’s here on YouTube
it’s also part of the entrepreneur video
network as a premium provider premium
partner there and this is where my show
the biz doc for case studies every
Friday shows up all of that programming
coming together to make a channel there
are other channels out there that are
not per entrepreneurs like value team it
is that may be about you know all kinds
of topics new content is coming in the
future that is going to need a home it’s
going to need a lane beyond YouTube
there’ll be millions of subscribers on
YouTube but then they’ll also be the
opportunity to go other places as well
and when you take a look at all that you
say to yourself I’m going to be ready
for a future in which I’m not
constrained by bandwidth or the old
business rules of cable and satellite I
can go far and wide and the consumer is
going to be right there not with their
clicker
but with their mouse or their finger on
their iPad subscribing to you and you’re
arriving through one of these services
that’s the future of it it’s never been
a brighter future for content and if
you’ve got a Content dream and a vision
pursue it because there are more roads
for you to get to the consumer and the
viewer not fewer roads and there you
have it
I need the pillow you know we need like
a digital over-the-top pillow you know I
think we need one of those
thank you for watching value teaming the
best channel on the internet for
entrepreneurial content please subscribe
here on youtube we’re on a mission to go
to a million subscribers and you’re
going to be part of it until next time
I’m Thomas Worth I hope I left you
better than I found you [Music]
studies with the biz doc this week we’re
going to talk about the distribution of
content from traditional cable TV to the
new over-the-top services and what it
means for you whether you’re doing a
training video for your company and
you’re putting it on youtube and you
want to distribute it or you create a
series of brand-new content that gets
picked up by new distribution in new
ways last week we did a case study on CB
insights and I talked about how that
innovative company in New York was
taking all the data of startups around
the world whether they’re digital
startups financial startups doesn’t
matter what industry it’s not just tech
guys in Silicon Valley synthesizing that
data and making new content many of you
asked what’s happening the old school
content and I don’t get it with new you
know million channel internet subscriber
services and new things that are showing
up like on YouTube such as the value
team at channel you’re watching now
what’s going on with this I said well
it’s a long story of distribution but
there’s some important lessons in it
that we can take for you and me number
one content is king will always be king
Bill Gates gets credited with saying
that and I agree with it to this day now
in terms of dollars in Wall Street in
America distribution of television
content with King as Comcast and Time
Warner and Dish Network and DirecTV
dominated bringing that content to your
home through cable or satellite well
content is king in the way it’s
distributed is moving around and there’s
a couple examples of how the old kings
of content who didn’t change have fallen
from their perch so let’s take a look at
what happened in cable and satellite
through the eyes of content and let’s
think about what you would do with
content for your new youtube channel as
you look at a broadening distribution
network for your content over the top
Toms word of the day
over the top meaning through the
internet through a Google chromecast
device Apple TV or Roku box into a
traditional TV that is no longer
connected to cable and satellite before
I get into this let’s talk a little bit
about the US market I know many of you
are watching around the war
old but we’re just going to look at the
US market for now where these stats are
but it is applying very similarly in
markets around the world specifically in
Japan Australia and Western Europe right
now in the United States it is said 25
percent of households today no longer
have a traditional $50 cable and
satellite subscription they maybe have a
mini plan to get their local channels
like here in Texas local channels are
important to alert you to tornadoes and
weather alerts although your phone will
beep and tell you about that as well
but a lot of times local news is still
important for certain things with those
many plans they add to it maybe a
Netflix subscription or a Hulu
subscription but the traditional hundred
channels of cable television sitting
there on the couch just flip them
through each one 25 percent done and
let’s take a look at where it went this
is a little graph right here in the
middle looking at cable subscribers
United States in 1990 there were 51
million of them in 2016 there’s 52
million of them in mean time went all
the way up to 66 and what all the way
came back now it’s been replaced by a
little bit of Telecom subscribers like
Verizon FiOS in the United States and
AT&T u-verse which is known as Telecom
subscribers and that’s made up some of
it but along the way people of
increasingly especially in the younger
new generation say me and you and Gen X
and Gen Y Millennials represent for
getting their content new in different
ways ESPN the news really is that their
content once was the dominant of sports
they no longer corner all the markets of
it they had a hundred million
subscribers in 2010 and they are about
to crash under 80 million subscribers
2017 2018 in the next year or so that’s
pretty terrible that’s like that’s more
than a 20 percent loss of subscribership
and you’ve seen them laying off a lot of
the talent that we almost used to know
and love today a great guy I used to
John Clayton has been let go by ESPN not
fired but in the sports world we say
you’ve been cut nonetheless you can see
that you know if you don’t adapt your
content it doesn’t matter whether it’s
cable or satellite or over the top guess
what you lose subscribers so this is the
traditional system and now let’s get
that out of the way per second now let’s
go look at where it’s going where it is
going is to a new generation called OTT
over the top and it comes from there’s a
lot of people that say that it came from
going over the top of the house down
into it or over the top of the
traditional networks wherever it really
came from it doesn’t really matter over
the top means it no longer comes through
cable or satellite cable used to be in
the United States at least whatever
cable was in your neighborhood that was
the one you got because there wasn’t two
or three or four choices at the curb
there was cable or after 1994 you could
get DIRECTV but that was it and DISH
Network of course well now guess what
the internet comes into your house you
get moderately fast internet and thanks
to digital compression you choose your
systems and a lot of them now have built
packages that look a little like cable
TV collections of channels you used to
like and a lot cheaper rate because
they’re not paying for all that
equipment coming into your house they
don’t dig trenches for cable now they
still got to pay the programming people
a lot of money an ESPN is still getting
$7 of subscriber give or take and ten
years ago they got $5 a subscriber so
maybe the cost of ESPN is part of their
their downfall
I wanted downfall but their slide when
you still have 80 million subscribers
it’s not exactly downfall but you sure
as hell got to fix what’s what’s going
on here and stabilize both your content
your delivery and your style and your
business practices needless to say these
over-the-top solutions emerge we have
sling that’s owned by the Dish Network
dish which was a competitor of DirecTV
run by a billionaire and a guy named
Charlie Ergen who once tried to buy a
company that I was part of and I got to
know Charlie very briefly at that time
and he is not a guy to be trifled with
it is not surprising that Charlie Ergen
even though he’s one of the old-school
cable and satellite guys with the Dish
Network is taken sling and has made it
one of the leaders among the over the
top providers that sells you a whole
basket of products then there’s
playstation view coming through your
playstation again a basket of channels
for 30 40 dollars maybe a little less
per month DirecTV now is in there so
DirecTV saying hey we’ve got all these
wonderful subscribers we’ve got this
content for satellite well what if a new
subscriber comes up and they just want
to do it over the top we’ve got the
contents and nonetheless they merge
DirecTV now and then there’s hulu hulu
was owned a little bit by everybody as
they were all putting their toe in the
water on this library of digital
download content now including live
channels and they’re actually owned by
Comcast Fox Disney and Turner and of
course Comcast is NBC so you’ve got them
out there claiming 12 million
subscribers now sometimes this may be a
$4.99 pack where you can just download
things these are talking about packages
nonetheless here comes over the top as
long as you have faster in it to your
house you connect it to your computers
you connect it with a chromecast or a
Roku or an Apple TV to your TV and
you’re ready to go you go and select one
of these to get the channels that you
want and a lot of them people are
selecting only a few channels that they
want I only want the Food Network or
cooking or I’ve got kids like I do I
just want Disney and sprout and
Nickelodeon and things like that I don’t
need all the rest of this we’re going to
do other things with our time
nonetheless very there you have it
what’s interesting is Juniper Research
juniper a very very well respected
market research firm has predicted that
by 2019 when you add all the players
that are up here and more including
people like Netflix that have 77 million
subscribers but it’s just for their
their movie programming it’s not a
basket of channels at least not yet
they say there’ll be 330 million
subscriptions
and if you think about it that’s
basically the population of the United
States so it’s pretty amazing what’s
going to be happening here so when you
think of over the top going where it is
the 330 million subscriptions I got one
word for that it’s like damn look at
that
that’s as new places to get content so
what does it mean for your content if
you’re building a content driven
business that maybe you’re going to
educate or just entertain or inform in
some way but you have a vision for
building a high quality channel like
Patrick that David has done the value
tainment channel that’s here on YouTube
it’s also part of the entrepreneur video
network as a premium provider premium
partner there and this is where my show
the biz doc for case studies every
Friday shows up all of that programming
coming together to make a channel there
are other channels out there that are
not per entrepreneurs like value team it
is that may be about you know all kinds
of topics new content is coming in the
future that is going to need a home it’s
going to need a lane beyond YouTube
there’ll be millions of subscribers on
YouTube but then they’ll also be the
opportunity to go other places as well
and when you take a look at all that you
say to yourself I’m going to be ready
for a future in which I’m not
constrained by bandwidth or the old
business rules of cable and satellite I
can go far and wide and the consumer is
going to be right there not with their
clicker
but with their mouse or their finger on
their iPad subscribing to you and you’re
arriving through one of these services
that’s the future of it it’s never been
a brighter future for content and if
you’ve got a Content dream and a vision
pursue it because there are more roads
for you to get to the consumer and the
viewer not fewer roads and there you
have it
I need the pillow you know we need like
a digital over-the-top pillow you know I
think we need one of those
thank you for watching value teaming the
best channel on the internet for
entrepreneurial content please subscribe
here on youtube we’re on a mission to go
to a million subscribers and you’re
going to be part of it until next time
I’m Thomas Worth I hope I left you
better than I found you [Music]
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