About The Service
Bermuda residents can sign up at Disney Plus or any device. For one monthly flat fee of $6, the company will serve you the catalog of Disney, Star Wars, Marvel, National Geographic, and new exclusive content like the Mandalorian. Video can stream on any device where your IP address is approved.
- Apple App Store, Google Play Store that covers your phone, tablet, or streaming box
- The Disney Plus website on your computer
- large screen TVs that permit apps.
Impact of Streaming on the Industry
While this is great for consumers, it may impact local media subscription businesses Digicel, One Comm, WOW, and their regulatory authority.
The increase in international streaming services creates serious problems for the local video media delivery industry. Joined at the hip, the cable TV provider depends on sales revenue while their regulator depends on sales fees as income. Therefore, it is crucial both keep residents buying services to keep them profitable.
Consumer Versus Company
Consumers benefit from the local video providers and their regulator's problems. Through international streaming, consumers enjoy lower prices for content, a wider range of preferred content, and the ability to consume content across many devices inside and outside the home.
By contrast, consumers can attest that cable companies are notorious for selling one million channels for one million dollars and stopping customers from reducing their bills. And few realize Retention Specialists are important to the cable company and the regulator. They ensure customers stay connected and paying.
Depth of The Local Video Industry’s Problem
The cable provider and regulator problems deepen — irrecoverable revenue loss. In Bermuda, an average cable subscriber agrees to pay about $70 a month or $840 a year for Pay-TV. That may not sound like much for Bermuda, but with the introduction of international streaming, residents pay the same price as the United States per month - roughly $10 per month per platform. Bermuda providers have to compete directly for resident dollars. And if the customer cancels, that money never comes back. The cable company and regulator lose their demanded income.
To date, carriers have taken action. They lobbied their regulator to stop unbranded-streaming services, aka IPTV companies, from offering residents service. The regulator threatened large fines and jail time if Bermuda based IPTV shops did not stop. Branded streaming services like Netflix, Amazon, and now Disney are a little more difficult control — they are global and recognized by Visa and MasterCard. The Bermuda regulator is a $6 million a year operation, Netflix is $20 billion. See their problem?
Local Video Industry Can Fight Back
Local providers do have options — strategic business tools to ensure they keep their high profits regardless of the loss in their Cable TV divisions. Providers own wired and wireless networks. They can leverage those networks to generate cash by restricting bandwidth, stop investing in the networks, or increase broadband prices — tactics seen in other markets to sustain or increase profitability. The regulator would have to consent to the deployment of these business options.
Bermuda charges some of the highest prices in the world for bandwidth over landline and wireless, so blatant price increases would be like seeing a sore thumb then intentionally banging it with a hammer — yes, cruel, but that is business and effective! Restricting bandwidth or slowing investment is easier; for example, while the rest of the world operates at 100 Mbps for $40 and 200 Mbps for $60; Bermuda offers the same 100 Mbps for $100 — a year later, keep the price $100 for 100 Mbps while elsewhere the price drops to $20 for 100 Mbps.
The National Impact of Streaming Companies
Streaming companies have a knock-on effect on the local economy — they impair jobs and taxes. The local cable company still requires a range of staff to produce and sell the CableTV product. When the customer cancels, it does make it harder to retain staff for a service that is on the decline. In Bermuda, the tax base shrinks when job losses occur.