Review the following hypothetical scenario and answer the following question: We are increasingly concerned about Over-the-Top programming. With HBO and Showtime offering their programming directly to consumers and some sports networks (e.g., NFL and MLB) considering the same, we are concerned that we might lose subscribers. We need to know how losing subscribers would affect existing networks and whether it might impact their decision to market directly to consumers. It would assist us if you would identify whether there are any network effects in the decisions of cable customers to “cut the cord” and networks to provide OTT programming. If more networks sell directly to consumers, how will this affect the demand for our cable television services? Also, will it impact the decision made by other networks. Finally, are there any strategic moves that we should be making to counteract this trend?
We are increasingly concerned about Over-the-Top programming. With HBO and Showtime offering their programming directly to consumers and some sports networks (e.g., NFL and MLB) considering the same, we are concerned that we might lose subscribers. We need to know how losing subscribers would affect existing networks and whether it might impact their decision to market directly to consumers.
It would assist us if you would identify whether there are any network effects in the decisions of cable customers to “cut the cord” and networks to provide OTT programming. If more networks sell directly to consumers, how will this affect the demand for our cable television services? Also, will it impact the decision made by other networks. Finally, are there any strategic moves that we should be making to counteract this trend?
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