An article concerning the television industry in Canada by the Globe and Mail took my interest. The article was about how tv and cable companies might have to start letting customers subscribe to only the channels they want.This is in response to the competition faced by on-demand online alternatives to cable such as Netflix. This new idea will give customers incentive to keep buying cable since they only have to subscribe and pay for the channels that they want, compared to initially buying a certain number of channels through a package. Cable companies are changing the “channels” in their business model canvas(pun intended) in which they are reaching their customer segments, while also changing their cost structure and revenue streams.
Tv providers and broadcasters however stated that “introducing pick-and-pay would harm industry revenues, lead to job losses and channel closures, and might drive up the price of some channels.”(REF) This is an example of the disruptive power online platforms are having on the entertainment industry.
I personally don’t have a strong opinion on this topic, but do find it very interesting how the entertainment industry is having to adapt to new developments in technology. I am also quite intrigued to see what the next “Netflix” is and the disruptive impact it will have.
Bradshaw, James. “‘Pick-and-pay’ TV a Popular Idea, but Many Unaware It’s Coming: Report.” The Globe and Mail. N.p., 19 Nov. 2015. Web. 20 Nov. 2015.