Rabu, 16 Oktober 2013

Big Cable & Netflix -- If You Can’t Beat ‘Em, Join ‘Em?

Netflix has been the bane of existence for big cable companies for years now -- an arch-nemesis -- as its over-the-top content service competes directly with (and poaches customers from) their own IPTV content services.  But, now, perhaps seeing what many believe is the proverbial writing on the wall in this long-time OTT v. IPTV cage match -- i.e., OTT service domination -- as big cable companies are reportedly in discussions with Netflix to carry Netflix on their own set-top boxes.

This follows closely on the heels of quite revolutionary comments by Cablevision CEO James Dolan who said that “there could come a day” where the company gets out of offering content services completely due to Netflix and others of its ilk (Amazon Prime, Hulu, Vudu, YouTube, etc. etc. etc.).  In his words, “if you don’t ride the wave” you get “eaten by the wave.”

While these recent reports underscore continuing disruption of traditional business models, they aren’t surprising.  After all, margins are much higher for cable companies in offering broadband services (as compared to offering content services).  And, with the accelerating pace of OTT video adoption, faster and faster pipes are coveted by consumers.

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