The AMC Apple TV app and the coming political battle on internet pricing

This from Apple Insider:

Like its iOS counterpart, AMC for Apple TV features full episodes, behind-the-scenes extras and bonus content from its various original shows including “The Walking Dead,” “Fear the Walking Dead,” “Better Call Saul,” “Halt and Catch Fire” and more.

Currently, Apple TV owners can stream the first three episodes of “Fear the Walking Dead” without signing in as a subscriber. Show extras are always available for streaming, but viewers must link their cable or satellite provider account details with the app to access AMC’s back catalog of full episodes.

Fascinating to watch this new “TV model” unfold. In my view, for a company to sit at this table, they need original or exclusive content, and their pricing needs to be a perceived cost saving over a cable bundle. As this model matures, I suspect we’ll see some price compression on à la carte content. As is, the bundle is still a better deal.

As more and more companies roll out their unbundled pricing plans, competition for a slice of a consumer’s monthly media budget will heat up and it will be harder and harder to compete on price with the cable bundle. This will likely drive unbundled prices down until the price of “cord cutting” becomes compelling enough to tilt consumer habits away from the bundle.

This is similar to the race to the bottom that compressed App Store pricing and made in-app purchase the norm. It would not surprise me to see that model emerge on Apple TV. Lots of free content, some fully paid content, and a river of content that is free at some level, with in-app purchase to open the door to a variety of special content.

Another change that’s likely coming is to the monthly cost of internet. If the cable companies lose enough market share to the unbundled offerings, it seems logical that they will raise their internet rates to compensate. And that will likely bring some form of disruption from local internet service firms.

And that will cause some major political battles, as it is difficult, if not impossible, in many jurisdictions to provide an independent internet service that flows over the existing cable infrastructure.

Lots of pressures from all different sides. Things are heating up.