Rick...you make some very good points. I agree with you that one of the reasons for the 90% adoption rate of the linear Pay TV bundle in the US market at its peak (~2013) was due to there not being as much competition for consumer attention. Today, there are certainly households where TikTok, YouTube, Instagram and other non-Hollywood diversions on the internet are considered enough to provide daily entertainment. So getting 90 percent adoption (and the related engagement) is likely beyond where the theoretical max is today. Good competition will have that effect! But I do believe the optimal outcome for traditional Hollywood companies at this point (mergers and lower debt levels could change this statement of course) is to architect an everything product and price it extremely attractively in order to earn scaled engagement.
Rick...you make some very good points. I agree with you that one of the reasons for the 90% adoption rate of the linear Pay TV bundle in the US market at its peak (~2013) was due to there not being as much competition for consumer attention. Today, there are certainly households where TikTok, YouTube, Instagram and other non-Hollywood diversions on the internet are considered enough to provide daily entertainment. So getting 90 percent adoption (and the related engagement) is likely beyond where the theoretical max is today. Good competition will have that effect! But I do believe the optimal outcome for traditional Hollywood companies at this point (mergers and lower debt levels could change this statement of course) is to architect an everything product and price it extremely attractively in order to earn scaled engagement.