Why Service Bundling is a Thing of the Past

Media technologies conceptReed Hastings, the CEO of NetFlix, recently predicted that broadcast TV will be dead by year 2030. Companies like NetFlix, Amazon Prime, and Hulu are the industry leaders of this trend of streaming on-demand services.

If we no longer need to pay for cable, then I guess it’s time we do away completely with our service bundle. Whether you have a variation of triple-play or double-play, bundling your cable, internet, and home phone no longer makes financial sense.

The first disrupter to the status quo was the introduction of VoIP, which has significantly reduced the costs of the average household phone bill. In 2013, the average household spent $30 per month on their home phone. Consumers who use VoIP services rather than the traditional landline can get plans as low as $6 per month, and have access to a larger array of features. While their are significant savings to be had, VoIP alone doesn’t seem to be the straw that will break the camels back in the service bundling world.

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Data from Nielsen

The second disrupter to the status quo has come in the form of streaming services and paying only for what you watch, or À La Carte. Just last month, CBS became the first cable network to join the likes of NetFlix and Hulu. HBO has also announced plans to offer streaming access to their content, ushering in a new age in the entertainment industry. Reed Hastings could be proven correct as more networks are destined to venture into this new distribution channel.

NetFlix costs current members $7.99 per month, and new members will have to pay $8.99 per month. This is a steal compared to normal cable bills, which can run well over $50 per month, but is NetFlix enough? If not, you can add CBS streaming for an additional $5.99 per month, or add HBO (the price hasn’t been announced yet). More options are sure to come into the market over the next few years, and finding shows and movies to stream will become ever more simple.

The biggest question in this new world of À La Carte is the lucrative contracts between networks and sports leagues. CBS has announced they will not offer NFL games as part of their stand-alone streaming service, which last year drew 108 million viewers during the super bowl. It is estimated that an ESPN standalone service would have to price arohappy male friends with vuvuzela watching sportsund $30 per month to maintain the revenue they see through bundling. While the sports dilemma is a major issue, CBS has confidence that the NFL games will be streaming in the near future.

The third and last frontier of service bundling, is probably also the most important. Household internet service must be both speedy enough to stream whatever it is you want to stream, and reliable enough not to fail on you and thus disrupt your VoIP service.

Service providers may be upset to see all of their customers doing away with the bundle, so the least you could do for them is stick with their internet offering. Households today are becoming more and more reliable on the internet, like LG’s new smart fridge, so maybe investing in a high speed internet isn’t the worst idea.

 

Cheers,

Dan Brady

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Nomorobo

Man shouting on the phoneBack in July, VOIPO officially partnered with Nomorobo, the promising new service that blocks robocalls and telemarketers. Winner of the FTC Robocall Challenge, Nomorobo is currently the best service of its kind on the market. According to their website, the cloud-based service has blocked close to 13 million robocalls to date.

 

The service utilizes simultaneous ring to detect known robocallers on the Nomorobo server and block that call from ringing your home phone. To the frustration of telemarketers, Nomorobo’s large database of blacklisted numbers is continuously growing as more telemarketers and robocalls are detected.  Their system detects new robocallers if their server identifies the same number placing multiple calls simultaneously. At the same time, the service still allows important automated calls, such as weather advisory warnings and school closings, to go through to your phone.

 

Even if you have signed up with the Do Not Call registry, you are more likely than not still receiving unwanted calls. While Nomorobo isn’t bulletproof, it’s pretty darn close.

 

“Nomorobo is dedicated to eradicating the problem of robocalls once and for all,” said Nomorobo Founder, Aaron Foss. “By partnering with VOIPO, we are able to vastly expand our network of users. VOIPO’s customers will now be able to enjoy the protection of Nomorobo right from their account control panel. It couldn’t be easier for them to keep their phone line safe from spammers, scammers and frauds.”

 

These spammers, scammers and frauds make up for hundreds of millions of dollars in theft every year. The FTC is doing their part to protect consumers, and this includes helping to spread the awareness of innovative companies like Nomorobo.

 

Cheers,

Dan Brady

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Hello, Irvine! Our new office

 After 3 years in Newport Beach, the VOIPO headquarters has officially relocated to a new office at 16411 Scientific Way in Irvine, CA. The feeling is bittersweet for some, as the old office was like that favorite childhood stuffed animal that was hard to let go of even after it lost both arms.

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The new space, with a more professional and team-oriented atmosphere, will be our new home for the foreseeable future. We hope to grow into this building as our support team expands to handle our growing customer base and we seek to extend support hours.

 

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As always, the growth of VOIPO is not possible without our customers and we continue to thank you through our commitment to superior customer support and unparalleled VoIP features. 


Cheers,

Dan Brady

 

 

 

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