Impact of Over-The-Top (OTT) Services on Cable Providers
Explore the implications of Over-The-Top (OTT) video programming on cable providers, including revenue considerations, franchisee relationships, and the shift in consumer behavior towards streaming services. Learn how cable providers are adapting to the rise of OTT services and the challenges they face in maintaining revenue streams.
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Presentation Transcript
OTT Local Revenue Implications Brian T. Grogan, Esquire Moss & Barnett brian.grogan@lawmoss.com Garth Ashpaugh, CPA Ashpaugh & Sculco, CPAs, PLC gashpaugh@ascpas.com Nancy L. Werner, Esquire NATOA General Counsel (703) 519-8035 nwerner@natoa.org NATOA 2022 Denver August 31, 2022
OTT Over-The-Top Video Programming What is it? Peacock, Disney, Paramount, Paramont Plus, Discovery, Discovery Plus, Amazon Prime, Netflix, Acorn, AMC+, Apple TV, Hulu, YouTube, YouTube TV, Sling, CBS All Access, HBO Now & Max, Carnegie Hall+, MC Relax, MC Karaoke, Stingray Karaoke, Gaiam TV, Anime Network, Ride TV, Pluto TV, PBS and more every day. Why important? Syphoning video subscribers from cable. Impact If not included, then decreasing gross revenue subject to fees.
OTT relationship with Franchisees (1) Some franchisee offer OTT through the Set-Top Box (STB), similar to HBO, Showtime and other premium channels. Then franchisee also bills the subscriber as part of their regular bill. This is referred to as Billing & Collection . Best example is Netflix through Comcast, Verizon and others.
OTT relationship with Franchisees (2) Apps Franchisees make the company s App available and then receive compensation for their subscribers / customers use of that App continual compensation? one-time fee? Don t know. Affiliate relationship Comcast owns and send customers to Peacock. Comcast owns other programming available OTT. Google owns Hulu. The list goes on.
OTT relationship with Franchisees (3) Affiliate relationship Comcast owns and send customers to Peacock. Comcast owns other programming available via OTT. Google owns Hulu. The list goes on.
Cable and OTT Cable providers are providing OTT services Comcast Flex provided through the Xfinity box includes streaming and premiums Cox Wireless 4K Contour Stream Player All your favorite apps. All in one place. Charter / Spectrum - Spectrum TV App stream live TV on all your devices Cable subscribers revenue to OTT, example Peacock.
SO ??????? A. We need information about the business relationship B. We need disclosure of the financial compensation received C. You cannot evaluate this without information HOW DO WE DO THIS LEGAL?
QUESTIONS QUESTIONS Brian T. Grogan, Esquire Moss & Barnett 150 South Fifth Street, Suite 1200 Minneapolis, MN 55402 612.877.5340 brian.grogan@lawmoss.com Garth Ashpaugh, CPA Ashpaugh & Sculco, CPAs, PLC 300 N. New York Avenue, #879 Winter Park, FL 32790 407.645.2020 x1 gashpaugh@ascpas.com Nancy L. Werner, Esquire NATOA General Counsel NATOA 3213 Duke Street #695 Alexandria, VA 22314 (703) 519-8035 x202 nwerner@natoa.org
