Streaming Live Events: Why Not and Why It Won’t Kill TV

It is a common myth that streaming services like Netflix do not stream live events and news. In reality, live sports, news, and other events are being streamed by various providers. This article delves into why certain streaming services do not live stream, and why the traditional television (TV) industry is not at risk of being killed.

Why Streaming Services Don't Stream Live Events

One of the primary reasons why some major streaming services such as Netflix do not stream live events is because of their business model and focus. Netflix, as a subscription-based service, primarily focuses on on-demand content rather than live events. While it’s possible that Netflix might consider expanding into live streaming in the future, it's not on their current radar.

However, streaming live events is not exclusive to Netflix. Various other services such as YouTube TV, DirecTV NOW, PSVue, and local broadcasters are already streaming live events. These services provide users with a wide range of content, including local news, sports, and other television channels.

The Presence of Streaming Services in India

India has a vibrant market for streaming services, with several players vying for market share. Some of the major players include Hotstar, Star TV network, Sony Liv, Sony Entertainment TV, Zee5, and Zee Telefilms. Among these, Hotstar stands out, being the most popular service. Another popular service is Voot, which is part of the Viacom18 network.

The costs of subscription to these services are quite affordable, starting from INR 599 to INR 999 annually. When converted to US dollars at a reasonable exchange rate, these prices range from about $8 to $12 per year, which is quite a bargain. These services cover a significant portion of the cable channels, accounting for about 95% of the most watched channels in India. The current pricing structure is designed to introduce new subscribers and is likely to remain competitive against traditional cable and dish services.

Disruption Potential and Technical Challenges

The potential for these streaming services to disrupt traditional cable and dish TV services is real. They offer a cheaper alternative and provide users with a wide range of content. However, several technical challenges need to be addressed before streaming can become a viable replacement.

Complexity of UI: Streaming services often have complicated user interfaces, making it difficult to switch between different channels. In contrast, traditional set-top boxes (STBs) provide a simple and straightforward interface for switching channels. This can be a significant barrier for users who are used to the convenience of a simple UI.

Sir Andrew of User Experience: Keeping track of multiple subscriptions can be a hassle, especially when users need to manage different streaming services. The user experience is often less seamless compared to the unified service delivered by traditional broadcast providers.

Bandwidth and Speed: Streaming live events requires a very high-speed internet connection. Users cannot rely on slow or unreliable internet connections, which can lead to buffering and loss of quality. This is a significant technical challenge that needs to be addressed.

Cost and Scalability: The current pricing structures are likely to be introductory prices. As the number of subscribers increases, the cost of providing high-quality live streaming with no buffering or loss in quality may rise. Streaming services need to ensure they can sustain these costs as they grow.

Technical Doubts: With a limited number of current subscribers, streaming services may not require extensive server capacity and high-bandwidth infrastructure. However, as the subscriber base grows dramatically, the ability to manage and provide high-quality live streaming becomes a significant challenge. Providing service with no judder, no buffering, and no loss in quality at scale could be technically demanding.

Complementarity versus Disruption: While streaming services have the potential to disrupt traditional cable and dish TV, they are also likely to become complimentary options. For example, during sports events, users might switch between traditional broadcast channels and streaming services. This can provide a hybrid viewing experience that satisfies different user preferences.

In conclusion, while streaming live events is not a primary focus for many major streaming services at present, the future of TV is evolving. Streaming services can and will continue to provide complementary viewing options, and the traditional TV industry is not at risk of being killed. However, for streaming services to gain widespread adoption and replace traditional TV services, they need to address the technical challenges and provide a seamless user experience.