I think of this as a foot in the door. Once OTT MVPDs exist and have paying customers they may have leverage to incrementally negotiate better licensing.
Once OTT MVPDs exist and have paying customers they may have leverage to incrementally negotiate better licensing.
How and why? Viacom's not giving anyone "better" fees to get their programming and you're going to have to get the whole Viacom bundle as well so if you want MTV and Comedy Central you're going to need to license VH1 Classics as well.
Any cost savings you're going to get would be as an OTT MVPD is from infrastructure savings but even then why would an OTT provider severely undercut on pricing?
How and why? Viacom's not giving anyone "better" fees to get their programming and you're going to have to get the whole Viacom bundle as well so if you want MTV and Comedy Central you're going to need to license VH1 Classics as well.
Any cost savings you're going to get would be as an OTT MVPD is from infrastructure savings but even then why would an OTT provider severely undercut on pricing?
The real win here is accesiblity on new devices.