Future of commercial streaming (YouTube, Hulu, Sling)

April 27th 2020 by Connor

What is Streaming?

Streaming TV is the digital distribution of live TV content through an internet connection. In contrast, cable/satellite TV runs through separate digital infrastructure and requires additional installation to your internet services.

Streaming vs. Cable/Satellite

Streaming can be less expensive than cable & satellite TV services. The actual subscriptions themselves are cheaper. With cable/satellite, your base package price is inclusive of the highest quality feed available and overall bandwidth. With streaming services, the quality of the feed is dependant on the internet package you pair with it.

Streaming Options

Hulu TV, YouTube TV, Sling TV, and others are available for at-home use.

Streaming at a Business

The biggest obstacle to this is legality. Commercial contracts are required to do business at bars and restaurants. As of today, none of the streaming services have these contracts drawn up. These contracts are based upon the fire code occupancy (maximum number of people legally allowed inside a business). Once you clear the legal hurdle, internet bandwidth becomes the next large challenge. It will take an investment in enhancing the location's internet package to be able to handle multiple streams of content on the various TVs. Key question: how does the cost of streaming services + upgrading internet to support the needed complexity of multi-streaming compare to current cable/satellite costs?

What else does streaming lack

The same thing that non-DirecTV cable providers currently lack... NFL Sunday Ticket. In addition, streaming services often do not get some important channels due to initial contract negotiations.

Overall, streaming is in its infancy both at-home and especially commercially. We expect streaming to continue to grow and be a major player commercially starting in the next few years.

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