Last week, it was Sesame Street announcing their own version of Netflix…errr… digital TV service.
Now comes a story from Gigaom.com that AT&T is creating a $500 million joint venture to start their own Netflix….errrrr…. digital TV service.
It’s clear where the industry trend is heading.
TV viewing is going digital and online. And everybody from providers like AT&T, Dish Network, and Directv, to content creators like Sesame Street to Major League Baseball are creating their own version of Netflix.
In other words, viewing content a la carte for a small monthly fee.
To me, content creators have the leverage here. Because with where we’re heading, why do they need an AT&T or a Directv? They don’t need help with distribution. All they need is a website and server. Why do they need a CBS or a FOX? They don’t need help in making deals with advertisers if they have a paid subscription model.
Why not sell directly to the consumer and make all the money? I think this is where we’re heading. My take is that AT&T is late to the party.