VOD is DOA
Posted on April 27th, 2008 in Alaska Business, Digital Living, Technology |
GCI recently got some press over their revolutionary 7 years late launch of Video on Demand. Yay.
Okay, seriously, I’m just not seeing the return on a $10M investment for video on demand when I can get infinitely more options online. C’mon, you have to get off your fat ass and go the grocery sooner or later and good ‘ol Blockbuster is probably in the same parking lot anyway!
The way I read this announcement is that GCI clearly refuses to embrace the future of IP (Internet) based delivery of video, movies and entertainment. A $10M investment in cable TV will only further delay their desire to open the Internet pipes - which is what customers really want (and ultimately need).
Fear of competition
A few “nice” titles (see ADN article) is more than likely an understatement. How does GCI compete with the likes of Apple, Tivo and the myriad of other Internet media options - I’ll tell you. GCI will bundle outdated products in such a way that you have to buy everything at a premium to get the broadband performance you really need to use all the great online options. Now that you’ve sunk $100+ every month into hundreds of channels you never watch, long distance plans you never use and a digital phone that works some of the time…how can you possibly afford to buy an Apple TV and rent movies via that option?
The strategy
It’s simple, monopolize the coax cable and limit outside competition (by forcing customers to buy more than they want)… all of the things that GCI used to accuse the “other guy” of doing.
Parting shots
My two cents is that everyone should buy a DVD or Bluray disc and watch the movie over and over. It will look much better than the compressed cable video and you’ll send a message that VOD is DOA. Send Bob Ormberg an email letting him know you’d rather have real broadband connectivity at a reasonable price so you can watch what you want, when you want, from wherever you want.
If you want VOD, visit YouTube, Joost, iTunes or Blip.tv - there’s loads of great content out there and most of it won’t cost you another $1.99 on top of that already ridiculously expensive cable TV bill.
Scott suggested I embed this video regarding not calling the current Internet offerings “broadband”… because it’s not! Good suggestion Scott!
/kk
4 Responses
Great stuff Kevin!
I do hope GCI reads this, which will probably have zero impact on their radar because they’re too thick to think forward. The future of broadband is here and people know exactly how to get and control their content today - there seriously needs to be a changing of the guard at GCI!
Scott
Thanks for the report. We were in fact trying to separate the fact from fiction within this ADN story over dinner last night.
I would also like to share one more heavy duty cool place to watch a TON actual TV shows but strictly on the web. It’s a joint venture between FOX and NBC located here http://www.hulu.com
I think my message will be “to any carrier”……. “Just give me a pipe guys. But ‘within reason’ please don’t tell me what to do with that pipe.’ Honestly, I will not call it a ‘dumb pipe’ and I will pay for it on time every month….
I agree! GCI along with our wirelss communications systems here in AK have been raking Alaskans over the coals. When I arrived here six years ago I could not believe the limited options available to us. It was like going back to the good old days. We had not had a cable box for 5 years before we moved here (tv was cable ready) but we had to get that oversize monstrosity in order to watch NBC!
GCI’s internet and phone service are terrible as well, and as long as the competition is scarce, GCI will not change.
NETFLIX is the way we roll!
Amen, and like everything else in this Great Land. The Great Price we pay is because of the “Freight” It’s the same with Alascom and ATT. I’ve heard that all my life, the reason to gouge you for every dime they can get.