ESPN & Showtime following HBO to offer stand alone service and going direct to consumer.

Posted November 10, 2014 by admin

ESPN is the latest channel announcing it is going to offer direct subscriptions next year, joining HBO and CBS. Separately, CBS said that its Showtime channel will also be available direct to consumer, by passing cable.

“We could say fairly definitively, sometime in ’15, there will be some service from Showtime,” CBS CEO Les Moonves said, responding to a question about CBS going direct to consumer with Showtime during his company’s conference call with analysts.

ESPN is owned by Disney so expect them to follow once the subscriber numbers and market get hashed out. Currently ESPN charges around about $6 a viewer, according to the most recent estimates available. They command the most of any mass channel provider.

You are going to see more and more of these a la carte channels and bundling of TV channels. Cable companies have been protected from competition but now may run the risk of being cannibalized by it’s channel partners. Cablevision CEO James Dolan said a “significant number” of channels are preparing to do the same.

So how does this relate to cell towers and cell tower leases? Well, cell sites are nothing more then location based network real estate. Combine that with the ability to finally deliver the speed necessary for high quality HD Video makes this an interesting opportunity for cell tower owners and will allow the consumers to “cut the cord” on cable. Look for continuing upgrades to current cell site tower locations that will help handle the speed required to deliver the content.

As always, if you have any questions relating to cell sites or cell tower leases give Cell Site Capital a call.Cell Site Capital cord-cutting-cable


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