This is a big deal for Amazon, which had previously refrained from partnering with any US pay-TV service to offer Amazon Prime Video. (The full scope of the deal is unclear at this point; neither partner revealed financial terms.) It’s arguably a bigger deal for Comcast, however. The partnership lets it remain relevant by allowing it to at least temporarily bypass the existential terror felt by cable providers in response to cord-cutting, the trend for viewers to shift from traditional cable television to streaming services.
As for over-the-air TV, reception in many areas ranges from limited to terrible. If you live in rental property, you normally don't have the option of installing a powerful outdoor antenna. If you live near mountains, even the best outdoor antenna won't do much. A streaming service can solve that problem. Another advantage to getting local channels via streaming is that you can record those programs with the DVR feature. The FCC requires cable and satellite companies to include locals. Even if that rule doesn't apply to streaming services, they are in the midst of adding locals in order to provide the most complete service. Since the streaming services' prices are generally lower, the full channel line-up also gives them a competitive edge over cable and satellite operators.
In hindsight, some TV executives believe the industry would be much healthier now if everyone—programmers and distributors—had agreed to make all episodes of shows available to cable subscribers on any device. That was the dream behind TV Everywhere, an idea hatched in 2009 by Comcast CEO Brian Roberts and Time Warner CEO Jeff Bewkes. But in those crucial early days, TV Everywhere struggled to get off the ground.
As cord-cutting has picked up steam, many cable companies are offering their own "skinny bundle" packages with internet and a few channels for less. It seems counterintuitive, but in 2018, "cutting the cord" can still mean sticking with your current cable company. The important thing when comparing these services is to look at the contract requirements and extra fees. Even if a service price looks the same as many all-streaming packages, if you need to tack on an extra TV box or two the monthly fees will add up quickly.
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