Cable

摘要

Cox’s new over-the-top TV service FlareWatch could point to a solution for pay-TV providers losingnbusiness to streaming services like Netflix, IHS said Wednesday. FlareWatch, currently in beta testing, is the first OTT subscription TV service provided by a pay-TV operator that isn’t tied to a cable TV subscription,nIHS said. Instead, the service is open to customers of Cox’s high-speed data packages. It offers customersnclose to 100 “popular” channels and a DVR, and costs $39.99 a month, $30 cheaper than an averagencable subscription, said IHS. It doesn’t include a “TV Everywhere” offering, it said. “FlareWatch representsnCox’s attempt to regain business lost to a new generation of ‘cord-cutters’ and ‘cord-nevers,’” saidnIHS analyst Erik Brannon in the release. He said it’s “likely to be the first of a new generation of productsnfrom other cable operators that will take a[n] ‘if-you-can’t beat ‘em-join-‘em’ approach to tackling the OTTnchallenge.” However, FlareWatch generates profit at much lower margins than does cable-delivered video,nBrannon said. “Any positive margin is better than no margin when customers purchase a video product,” hensaid. “There is likely enough headroom to be profitable, but not on par with typical cable margins.” Thenservice also gives Cox an opportunity to get non-cable subscribers to buy a video package, said IHS, callingnthe service Cox’s way of “loss-leading its way back into cord-never homes.”