The major appeal of streaming platforms such as Netflix and Prime Video has been the ability of viewers to cut the cord that tied them to subscription plans in linear cable TV of large blocks of unwatched programming. Streaming platforms offered a fresh revenue model for content that lets them curate a bigger offering at prices viewers are more comfortable paying. The internet as a distribution medium offers reliable viewership feedback and is inherently superior in terms of pricing content than what is streamed on terrestrial or satellite TV. It cuts through the ‘free rider’ problem.
Streaming platforms have, however, acquired their own dominance that content creators are uncomfortable with. This leads to unusual alliances that pool programming heft to counteract platform control. The Venu Sports app will try to lock in sports viewership by creating dedicated streams from the stadium to the viewer’s mobile or television screen. This is inherently more coercive to consumer choice than standalone apps that bid for rights to stream individual sporting events. Finally, though, pricing efficiency will be the differentiator for streaming services. Bundling is an imperfect tool, and the consumer has been exposed to a less imperfect one by video streaming apps.
