Marilois on Media 12-15-17

The End of the Internet As We Know It

Net neutrality ended this week. Since no one yet knows the fallout, I thought I'd share a few questions on my mind:

- Let's assume for a minute the end of net neutrality means that internet service providers will tier pricing based on which websites consumers want to visit. For example, you want Facebook and Netflix, you pay a premium. Frankly, at the speed with which consumers are cord cutting, I can't see that internet service providers (cough, cough, Xfinity) don't move to a tiered model to generate new revenue and maintain stock prices. Will tiered pricing drive consumers back to linear TV for entertainment? In other words, how important is Facebook to me for entertainment if it's just gonna cost more?

- OK, let's say it does cost more to access Facebook. How long before Facebook becomes an internet service provider?- Then there's potential legal action. Anyone want to bet how long before a case is brought to the Supreme Court, since ending net neutrality might be a construed as limiting free speech?Meaning, if a service provider decides to throttle access to certain sites, even if the ISP discloses it's doing so in a fine-print service agreement, will the courts decide that act is a suppression of free speech?

In any case, none of this surmises the impact on small businesses that are reliant on the internet. The one thing we know - the internet won't be experienced as we've known it.

Disney Gets Simpsons

Disney agreed to purchase 21st Century Fox for just over $52 billion. Disney will get most of the assets, except the television stations, FS1 sports cable channel and Fox News. So, no, Mickey won't own Fox News, as much as I'd love to see that meme. Disney will get Fox Studios, however, home of "Sound of Music," "Star Wars" and "Avatar." It also gets Fox television studio, producer of  "The Simpsons." So lots of great content for streaming and adventure parks.

Verizon Gets NFL

Verizon will pay more than $1.5 billion to stream NFL games over the next 5 years, an estimated 20% increase in the cost of Verizon's carriage rights YOY. The biggest change is Verizon will stream the games on its other properties, most notably Yahoo Sports hub. This deal is only the rights for mobile and tablet viewing. With that in mind, whatever you think of the NFL, you gotta hand it to them. In a season of declining TV ratings, they are adroitly able to monetize ever smaller inventory tranches.

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Marilois Snowman is managing director + founder of Mediastruction, a media design shop.

Marilois Snowman is managing director + founder of Mediastruction, a media design shop.

Marilois Snowman| Mediastruction | 508-540-3600 |marilois@mediastruction |

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