It’s Showtime: Another Player Enters the OTT TV Market

Another player is entering the over-the-top TV market – Showtime, owned by CBS Corporation – reported CNN Money yesterday. Like HBO Now which launched

Another player is entering the over-the-top TV market – Showtime, owned by CBS Corporation – reported CNN Money yesterday. Like HBO Now which launched in March, Showtime will be available to subscribers over the Internet starting in July. No cable required. An Apple device, however, will be. For now, the new service will only be viewable via iPhone, iPad, iPod touch and Apple TV.Viewers can subscribe to Showtime’s new service for $10.99 a month, $4 less than HBO Now. However, like HBO Now, Showtime will be available via Apple TV and it will offer a 30-day free trial for customers who sign up via Apple.”Going over-the-top means Showtime will be much more accessible to tens of millions of potential new subscribers,” said Les Moonves, CEO of CBS Corp., in Variety.”Across CBS, we are constantly finding new ways to monetize our programming by capitalizing on opportunities presented by technology. This works best when you have outstanding premium content – like we do at Showtime – and when you have a terrific partner like Apple – which continues to innovate and build upon its loyal customer base,” he added.This will be CBS’s second foray into the OTT market. Late last year, CBS launched CBS All Access, an OTT video-on-demand service. For $5.99 a month, subscribers can watch their favorite CBS shows on their mobile devices. The service allows subscribers to watch current shows the same day they air as well as 5,000+ episodes of classic chows like “Everybody Loves Raymond” and the “Brady Bunch.”Like HBO Now whose launch coincided with the season premiere of “Games of Thrones,” Showtime has timed its launch to coincide with July 12 premieres of “Masters of Sex” and “Ray Donovan.” In addition to regular programming, Showtime will allow subscribers to see East and West Coast feeds of network sporting events like Showtime Championship Boxing at the same time they air on cable television.Insider Take:This latest move by CBS and Showtime is not surprising, especially in light of CBS Corp.’s success with CBS All Access, which is expanding its local coverage into new markets. It is smart to capitalize on its success, and to try to keep up with HBO, one of its biggest competitors. Showtime’s advantage, for now, is its price point and unique live broadcasts, but it needs to maintain quality and add original programming to reach its fair share of the cord cutting audience.It is interesting that, like HBO Now, Showtime is focusing on the Apple audience segment. HBO currently has an exclusive arrangement to offer HBO Now only on Apple for six months. After that, presumably, HBO Now will expand its reach and be available to non-Apple customers. What about Android and Windows users? How long will they be content to be left out?As we’ve explained in recent posts, the OTT market is growing rapidly and is likely to attract many more entrants in the coming months. Early entrants to the market, like CBS and HBO, have an advantage for being among the first and having the opportunity to test their technology, audience and pricing before the OTT marketplace becomes too saturated.  

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