Mark Cuban is Right: Netflix is Good for Pay TV

Mark Cuban knows a thing or two about the internet. So when the owner of the Dallas Mavericks declared that Netflix and cable TV need each other, people listened.

He’s right, but Local Channels still aren’t available for Live Streaming. Broadcasters will have to catch up if they want to keep their lead.

Cuban shared with Business Insider that, while watching TV on demand via streaming devices is huge, it remains that Netflix (and similar platforms) still play second fiddle to cable.

In the article, Cuban claims that while streaming is becoming more popular, cable TV, the true “first screen”, is still King.  Only when programs become popular on cable do they get a loyal streaming-based following.  In other words, companies like Netflix reap the benefits of networks’ investment in programming and their command of their audience.

“With the exception of five or six shows, their brand was established somewhere else,” Cuban said of Netflix.

These statements are making heads turn.  After all, you can’t go onto Twitter or any technology newsfeed without hearing about the growing prevalence of “cord cutting”.  With the onset of Roku, Chromecast, Fire TV, etc., many people believe that cable TV will become a thing of the past.

So who is right?  Cuban or the new “techie” soothsayers?

The fact is, in 2013-2014 nearly all of the top 30 watched shows were from “Big 4” Broadcast Networks ABC, CBS, FOX, and NBC.  Sure, HBO, AMC, and Netflix had great shows, but live Broadcast Network shows still yield the highest ratings and the most advertising revenue.

Here are the facts:

Powerhouse HBO, despite its blockbuster performances over the past years, has only seen an average audience of 18.4 million on its best show ever (Game of Thrones) and that still underperforms the networks.  CBS’s Big Bang Theory had 23.1 million viewers in 2013-2014, followed by NCIS at 22.4 million.

Even at its pinnacle, HBO can’t seem to climb higher than the networks. Not meant to be a knock on HBO, AMC, or Netflix (because I watch all of them), but facts are facts.

Add that Netflix, HuluPlus, and Amazon Prime don’t have the contracts to stream live sports.  As tom’sGuide admits:

“If live sports is critical to your TV-watching experience, then you’re probably going to want to keep the cord. Sports is the one type of TV programming that’s hard to find online.” {source}

The NFL grabbed spots number 3 and 15 in the most-watched programming in 2013-2014.  Sunday Night Football had 21.7 million viewers without tracking for mobile streams.  Of course, ESPN is the biggest powerhouse in the entire sports-consuming industry and they are squarely aligned with cable (for now).

This all means that, like Cuban states, cable TV and networks aren’t going anywhere anytime soon even as streaming technologies gather steam.

Yet there are still issues with TV viewing that need to be addressed. 

While networks are going to be a mainstay, they will need to meet the audience everywhere, in every TV Market, to remain viable. Netflix, and other streaming platforms may have helped the Pay-TV ecosystem by scaring everyone into technological advances, better customer service, etc.

The problem is, although Nielsen’s mobile ratings trial has measured a 7-9% ratings lift from out-of-home TV viewing (in major markets), Networks, Affiliates, and MVPDs are struggling to make primetime shows and live sporting events available for streaming both inside and outside of the home.

Everyone wants a solution.  For an average TV station, one (1) additional ratings point from TV Everywhere could mean millions of additional revenue dollars that weren’t measured in 2014.

This is where TotalCast has an answer. MVPDs, Networks, and some Local TV Stations have created TV Everywhere apps – now they only need to acquire the content and secure the rights. TotalCast is designed to work with MVPDs, Networks, and Local TV Stations to make sure each Local Station gets credit for mobile viewing, only shows “cleared” for mobile are streamed, and everyone gets paid.

Through TotalCast’s geofencing and streaming rights management technology, MVPDs, Networks, and Local Affiliates can clear distribution rights and offer the most popular programming to viewers on mobile devices. In 2015, TotalCast looks forward to helping everyone along the Pay-TV Value Chain meet their audience on all devices, wherever they are, and make more money in the process.