Just one day after Time Warner Inc (NYSE:TWX)’s HBO announced online video streaming starting in 2015, CBS Corporation (NYSE:CBS) came up with its video-on-demand and online streaming services. More and more cable TV providers entering the online streaming services is likely to heat up the industry for existing players like Netflix, Inc. (NASDAQ:NFLX).
According to the chief executive of CBS, Leslie Moonves, this new on-demand-service is for the “superfans,” who prefer watching videos on the go or indulge in binge watching. He further added,
“You go to a college campus, there are no TVs. This gives them an opportunity to get access to a lot of our programming in addition to a live linear stream.”
The company has launched its new service under “CBS All Access” and it offers full access to the complete seasons of its existing shows for $5.99 per month. Moonves said,
“CBS All Access is another key step in the Company’s long-standing strategy of monetizing our local and national content in the ways that viewers want it.”
The service would offer complete seasons of its current 15 shows and nearly 5,000 episodes of CBS Classics.
The introduction of key players in the online video streaming industry including CBS Corporation (NYSE:CBS) and Time Warner Inc (NYSE:TWX) is not a good news for Netflix, Inc. (NASDAQ:NFLX). Further, Netflix announced that the company has added less-than-expected subscribers during this quarter.
Some analysts have called it an excellent move from CBS and Edward Atorino, analyst for Benchmark Co LLC, said,
“It’s an interesting way to tap into some data that probably sits there being unused, not generating any revenues. It’s no cost, they got the stuff there, they send it down the line. If somebody tunes in, great. If not, the costs are minimal”
He further said that the large existing collection of CBS gives it an edge over the current industry leaders including Netflix, Inc. (NASDAQ:NFLX). He added, “Netflix has either got to buy it or try to produce it. CBS has got a library sitting there 24 hours a day.”
This article has been written by Prakash Pandey.