Bell Media’s CraveTV, Stone Age Model In Fragmented Future

It is no secret that Netflix has created and executed a business model that resonates with consumer, just take a look at the company’s revenues and growing user base. Netflix has managed to disrupt the traditional cable TV and satellite providers across North America. While Bell Media was out celebrating their new online video service CraveTV yesterday they unfortunately failed to bring true innovation into their business model.

While bringing video content to smartphones, tablets and other Internet enabled devices is the future, it is not new and Bell Media has already offered this with its existing content. Yesterday while Bell was unveiling their future, IAC Chairman Barry Diller was on stage at Business Insider’s IGNITION conference where he shared he feels the cable and satellite TV model are heading for a major shake up over the next five to ten years. He also said, “”I think the future of television is more fragmentation, the bundle has no more elasticity in it.”

The cost of content will only increase no matter the platform and this will is part of what  is driving cable networks to think outside the box and create products that help their bottom line.  However, CraveTV’s model is one that  strong arms customers to continue paying for the stone age products, that legacy monthly cable bill and service to get access to what we as consumers want “choice,” or as Diller puts it “fragmentation.” CBS has announced they plan to launch a new subscription model in the new year that will allow consumers to pay a monthly fee to get access it content from its network, HBO also announced its HBO Go will be available in 2015. The key differentiator with both new services is that all you will require is Internet access to get either service.

With so many services moving in this direction, is it not fair to say this is the future? Is it not fair to say this new model is in the best interest of the customer?

Crystal Ball