Thursday, August 11, 2011

FOX 8 day waiting period - Short sighted in the wake of new viewership trends

      Fox, in there infinite wisdom has decided to make there internet viewers wait 8 days before they can see there favorite show (except if you have Direct TV, then you can watch them the next day).
     Michael Hopkins, President, Affiliate Sales and Marketing, Fox Networks, said, “We are continually looking at opportunities to provide our pay television distributors with content and products that enhance the value of pay television to subscribers". This seams like a case of the tale wagging the dog and it is contradictory to where the market is moving. More and more cable customers are cutting the high monthly cost of cable and moving to an Internet only option.  What the top Fox Executives are forgetting is, yes a portion of Fox's revenue comes from re-transmission consent fees but it pales to the real money in its VPT or Views Per Transmission fees (advertising to the rest of us).  With channels of higher revenue available, Fox's barrier to viewership seams I’ll conceived, short sighted in the wake of changing consumer viewing habits and ultimately detrimental to Fox’s recent revenue increases from advertising.




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