Showtime is the newest network allowing viewers to make the switch from TV cable subscriptions to stand-alone online streaming.
The network announced Monday that its new service will be immediately available, upon release, on Roku Media players and PlayStation Vue Cloud as well as the previously advertised Apple TV. The network will release its new program in early July with the aim of attracting those viewers who do not want to deal with the expense of buying large cable bundles. This release will coincide with new seasons of some of the network’s hit shows like “Masters of Sex” and “Ray Donovan.”
The service will cost $10.99 per month, $4 cheaper than HBO’s similar service, HBO Now, and around $85 cheaper than the $95.73 that most cable and satellite companies charge viewers on average per month, according to media research firm SNL Kagan.
Unlike HBO Go, another HBO streaming service, Showtime does not require subscribers to have a previous cable subscription and viewers will have access to every Showtime show as well as hours of movies and sports.
“Going over-the-top means Showtime will be much more accessible to tens of millions of potential new subscribers,” CBS Corporation Chief Leslie Moonves said in an online press statement. “This works best when you have outstanding premium content — like we do at Showtime — and when you have a terrific partner like Apple, which continues to innovate and build upon its loyal customer base.”
Showtime is just one in an ever-growing line of networks offering more than just cable programs to viewers. In January, ESPN disclosed its decision to offer a streaming service. Sony Entertainment Network is also planning on offering online streaming of MTV, Nickelodeon and Comedy Central.
Netflix and Hulu Plus were the forerunners of this online streaming wave. Netflix, founded in 1997, currently boasts 50 million viewers in 40 countries while the 10-year younger Hulu Plus has around 6 million subscribers.
“Showtime is in almost 24 million homes. So how do we expand? How do we get out there to more people? Obviously a lot of this is targeted to the 10 million broadband-only homes out there. And we think we can target to people who don’t get Showtime through their basic cable package,” Moonves said in an interview with Variety.
In January, when Showtime first advertised its new service, ESPN also announced Sling TV, the sports giant’s similar play for broadband streaming subscribers. Sling TV was released later that month.
For ESPN, a network that incentivizes most people to buy huge cable packages simply to watch its few channels, its jump into online streaming is huge. The ten most-viewed television programs in cable history were ESPN programs, and on New Years day the biggest cable audience ever watched ESPN’s coverage of the college football playoffs, with a combined 56.5 million viewers watching the Oregon-Florida State and Ohio State-Alabama games.
Dish Network, the telecommunications company behind Sling TV, charges $20 per month, although for each extra device used by a subscriber another $20 is added to the bill. This is an attempt to make sure that Dish maintains a solid cable base and prevents a mass exodus from its cable bundles to its online streaming options.
“This is a game changer for the industry because Dish has to be sure it doesn’t cannibalize its existing customer base,” said Chris Young, an analyst at SNL Kagan. “ESPN is a must-have on the basic cable platform and the big question is if $20 is the right point for consumers to push back on cable.”
Showtime, ESPN and many other large companies’ addition of broadband streaming services reflect the ever growing demand for faster, more flexible and less costly programs. This new insistence on such tailor-made TV appears to be driven by the 12 million millennials who have primarily ever used online streaming and will probably never revert back to viewing programs through cable.
“The online world is becoming a more and more important part of entertainment,” Moonves told Variety. “By no means do I expect people to leave broadcasting in droves or the traditional way of getting Showtime. This is a great new alternative.”
