Diginets Come of Age

摘要

AS THE AUDIENCE FOR DIGINETS GROWS, so do their programming offerings. And diginets' audiences are growing, make no mistake. While the nets - also known as multicast networks - got their start due to the availability of spectrum and extra channels when high-definition television came online, they have grown their businesses due to the unexpected rise of so-called cord-cutters and cord-nevers. Instead of subscribing to expensive cable packages, cord-cutters, or people who abandon their cable subscription, and cord-nevers, or those who've never subscribed to cable in the first place, figure out other ways to watch television. One way that is growing in popularity is pairing inexpensive over-the-air antennas with over-the-top streaming subscriptions. For example, a user could put an antenna on his house and then subscribe to advertising-supported Hulu for $7.99 per month, thereby creating a virtual cable package composed of over-the-air linear broadcasters, including ABC, CBS, Fox, NBC and The CW, as well as multicast networks, such as MeTV, This TV, Antenna TV, CoziTV and many more. The share of U.S. households that acquire their TV signals via over-the-air antenna increased to 20% - or about 24 million homes - from 16% from early 2015 through the end of 2017, according to Parks Associates data from March. "If you put yourself in the shoes of someone who can't afford or chooses not to subscribe to cable or satellite, an entertainment option with a free price point becomes popular," Katz Networks president and CEO Jonathan Katz said. "It's a pairing that has organically happened as consumers have combined these two platforms into their own bundle." In August 2017, The E.W. Scripps Co. acquired the 95% of Katz it didn't already own, including four multicast networks, Bounce, Escape, Grit and Laff, and subscription streaming service Brown Sugar, for $302 million. With the additional cash infusion, Katz has been able to accelerate its programming acquisitions. For example, in November, Bounce acquired all seven seasons of Shonda Rhimes' Scandal from Walt Disney Direct-to-Consumer & International, which it began airing in primetime on Monday, Nov. 12. Katz also has acquired Disney's According to Jim, to premiere on comedy-focused network Laff in 2019, joining Home Improvement, 3rd Rock From the Sun, That '70s Show, The Drew Carey Show, Night Court, Spin City and more.