Comments on: BroadbandTV Will Gain at the Expense of Cable/DBS/TelcoTV http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/ Providing insight, analysis, and commentary on the evolving telecom competitive landscape Sat, 13 Mar 2010 02:36:30 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Bill Winters http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/comment-page-1/#comment-443 Bill Winters Tue, 29 Jan 2008 19:27:17 +0000 http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/#comment-443 While I'll agree the issue of putting video distribution channels is slightly over blown, there is some real disruption taking place. They won't go out of business, but they will be forced to alter their business model significantly. If they go fighting, they'll lose. If they are rational and adapt, they'll be fine. You can't underestimate the choices that consumers will now have for content choice. Smart operators will find ways to embrace that choice and build competitive advantage around it. Those that try to force the old way of doing things will die - it'll be a slow death, but dead is still dead. While I’ll agree the issue of putting video distribution channels is slightly over blown, there is some real disruption taking place. They won’t go out of business, but they will be forced to alter their business model significantly. If they go fighting, they’ll lose. If they are rational and adapt, they’ll be fine.

You can’t underestimate the choices that consumers will now have for content choice. Smart operators will find ways to embrace that choice and build competitive advantage around it. Those that try to force the old way of doing things will die – it’ll be a slow death, but dead is still dead.

]]> By: Valjean http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/comment-page-1/#comment-441 Valjean Tue, 29 Jan 2008 17:35:23 +0000 http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/#comment-441 What Mr. Williams said, and more of it. The Biz Week piece reads, frankly, like an IPTV ad. The technology has been there for *quite* some time (Microsoft Media Center, anyone?), but the author's basic arguments -- TVs with Ether, "hybrid" delivery (a settop box, maybe?), and the always-coming "hockey stick" growth curve of game consoles -- conveniently avoid mentioning where the programs are coming from. HBO is going to strike a deal with Sharp? NBC Universal is going to license its programs to *hardware vendors*? I wouldn't hold your breath. As a consultant to MSOs and providers I've been hearing the "telcos, cable, and DBS are toast" argument for over ten years and frankly it's getting a little stale. Understand, I'd actually *love* to see these guys -- especially cable -- lose some of their customary arrogance. But don't assume you can just throw some new hardware into a home, wire it up, and viewers will instantly just start watching their favorite programs like they always have. There is *much* more at stake here than just "broadband is increasing and we can stream shows" -- and the high-profile stumbles in this area (see Uverse, Apple iTV, not to mention a score of movie download companies) haven't exactly burnished its image either. What Mr. Williams said, and more of it.

The Biz Week piece reads, frankly, like an IPTV ad. The technology has been there for *quite* some time (Microsoft Media Center, anyone?), but the author’s basic arguments — TVs with Ether, “hybrid” delivery (a settop box, maybe?), and the always-coming “hockey stick” growth curve of game consoles — conveniently avoid mentioning where the programs are coming from. HBO is going to strike a deal with Sharp? NBC Universal is going to license its programs to *hardware vendors*? I wouldn’t hold your breath.

As a consultant to MSOs and providers I’ve been hearing the “telcos, cable, and DBS are toast” argument for over ten years and frankly it’s getting a little stale. Understand, I’d actually *love* to see these guys — especially cable — lose some of their customary arrogance. But don’t assume you can just throw some new hardware into a home, wire it up, and viewers will instantly just start watching their favorite programs like they always have. There is *much* more at stake here than just “broadband is increasing and we can stream shows” — and the high-profile stumbles in this area (see Uverse, Apple iTV, not to mention a score of movie download companies) haven’t exactly burnished its image either.

]]> By: Walter Williams http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/comment-page-1/#comment-439 Walter Williams Tue, 29 Jan 2008 15:26:41 +0000 http://www.telecompetitor.com/broadbandtv-will-gain-at-the-expense-of-cabledbstelcotv/#comment-439 Many people are making this argument too simple. The current system will be around for a long time to come. Here's why - content owners have a wonderful annuity with the subscription model. To wreck that by trying to bypass their cable/DBS partners would be like shooting themeselves in the foot and then reloading and doing it again. Why would they risk giving up a virtually guaranteed anuity for the risk of trying to replace it with building direct relationships with fickle consumers. It makes no sense - but I guess its good to talk about. Many people are making this argument too simple. The current system will be around for a long time to come. Here’s why – content owners have a wonderful annuity with the subscription model. To wreck that by trying to bypass their cable/DBS partners would be like shooting themeselves in the foot and then reloading and doing it again. Why would they risk giving up a virtually guaranteed anuity for the risk of trying to replace it with building direct relationships with fickle consumers. It makes no sense – but I guess its good to talk about.

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