Wireless and broadband are top services today for cable TV as competition heats up
The Cable Television Industry has grown, crested and now is falling. This predicament has been happening for two decades and counting. So much so that believe it or not, cable TV is no longer their primary service. Today, broadband and wireless are. And broadband is now under attack as well from wireless and wire line competitors. So, what is the solution to this dilemma? Could the answer be found at the upcoming NAB Show?
Over the past several decades I have been saying the model that the cable television industry was founded on is broken. Things are only getting worse, year after year. Not the entire entertainment industry. Just cable TV. So, is there anything that can be done before it is too late.
After countless conversations with a variety of cable television executives over many years, this problem has been coming right at them for roughly two decades.
They had a choice regarding how to respond.
They could either try and solve this problem by growing their market share with new products and services the same way streaming services and other competitors are doing… or they could try to slow down the rate of loss.
Based on what I see, I believe they chose a little of both. They started selling new services like broadband, VoIP telephone, wireless, streaming services and more.
This was supposed to either solve and reverse the problem, or at worse slow the decline.
Cable TV sticky bundle slowed the rate of loss, but it continued anyway
The benefit was this bundle of services helped the cable TV industry create a sticky-customer who stuck around longer than they would have. That helped delay this current crisis.
However, it keeps coming at them and the cable TV industry reminds me of a deer, frozen in the headlights of an oncoming truck.
Cable TV added broadband, then wireless as a way to slow their decline. Today, while wireless is still a strength, broadband is at risk.
The broadband service from cable TV may be fast, but it is also very expensive.
As the price goes up year after year, customers are looking for an escape hatch.
That’s why new technologies are growing. New tech like wireless broadband from FWA, wireless, streaming TV and much more.
Over many years, I have met, listened to and advised several cable TV competitors about these problems.
I have also met with several small companies with big ideas to help cable TV offer a DOCSIS wireless broadband service. This could help cable TV companies battle this new competition.
Comcast started testing this months ago. I wonder how that test went?
The problem is cable TV, as an industry, is like a deer frozen in the headlights of an oncoming truch.
Xfinity, Spectrum, Atlice, Cox and others are backed into a corner
The bottom line is cable TV providers like Comcast Xfinity, Charter Spectrum, Altice, Cox and countless smaller competitors have painted themselves into a corner.
In the next few weeks there is an event for the television industry. It’s called the NAB Show. This is the National Association of Broadbcasters annual trade show held in Las Vegas.
The entire television industry will be represented there. There will be executives from all these important sectors gathered in one place.
What a better place to discuss and develop new ideas to solve this problem. It is in their own self interest.
The fear is a problem in one slice of the entertainment pie will ultimately impact the entire pie.
Smaller cable TV getting out of TV, and focusing on wireless, broadband
Things are getting so bad that smaller cable TV companies are starting to exit cable television. They are focusing on broadband, wireless and a few of them include streaming. Suddenly, their broadband is under attack from new competitors.
Something needs to be done for the cable TV industry.
As technology changes, so does the direction of industries. Remember when AT&T originally broke up during deregulation around 1980. Suddenly, there were one big long distance giant called AT&T and seven baby bells. That was when MCI, Sprint and countless smaller long distance companies competed for our business like WorldCom.
Over time, the marketplace changed. The Baby Bells were suddenly allowed to sell long-distance, and that spelled the end of the long-distance giants.
Cable TV and local telephone service is all fading away
Additionally, the world of traditional wire line telephone from the local phone company is now fading away as well.
I am not saying that cable TV is going away like long-distance… or am I?
This is a problem faced by both the cable television industry and the telephone business.
We just do not know what tomorrow holds.
Any way they slice it, things are changing and they need a new solution.
Cable TV is no longer the primary service of cable television companies. Today, they are wireless and broadband. And now it appears broadband is fading away as well.
So, what is the answer to this ongoing and growing problem?
The upcoming NAB Show is the perfect place to find new solutions to cable TV
That’s why I hope the upcoming NAB Show will take this challenge seriously. If they don’t help the cable TV industry with growth, they will only hurt themselves in the long run.
The NAB Show gives the nations cable TV providers a chance to mix with networks and content providers to develop new answers. All these executives at this single event is enormous brain power.
Certainly, you would think with all this brain-power in one place, a solution can be found.
What about Aritificial Intelligence? What about Quantum technology? Are there any growth opportunities for cable TV? Can they change direction and embrace new technology?
This problem has been growing for two decades already. And instead of developing a growth plan, the industry has been satisfied just slowing down the loss and painting themselves into a corner.
What is next growth strategy for cable television?
Today, their back is up against the wall.
Unfortunately, the cable television industry problem was self-created. They increased the number of channels and the price they charge for what they deliver.
The problem is the average user only watches a few channels, yet still must pay an increasing amount, year after year.
This model simply broke the cable TV industry. Customers want to pay less. Period. And cable TV charges more, year after year.
That’s what created a hunger in the marketplace for an alternative. This is a self-inflictred wound.
Competition is growing. The latest is how wireless carriers like AT&T Mobility, T-Mobile and Verizon Wireless are starting to offer wireless broadband services using FWA technology.
This is forcing cable TV providers like Comcast Xfinity, Charter Spectrum, Altice, Cox and countless smaller providers to be backed into a corner.
What is the future growth path for cable TV industry?
My big question today is this. What is the future of the cable TV industry?
While I do believe cable TV can survive, it will not be in the current form. Heck, these are giants, so they are not simply going away. New technology and new thinking continually reinvent yesterdays industries and create tomorrows.
Cable TV needs a knock-in-the-head, not a truck which is coming at them at full-speed-ahead. They need to start thinking in new ways. Develop new services. Shake off the tired old cobwebs,
They need to start their next growth wave. They actually should have done this decades ago.
That is why I hope the upcoming NAB Show can help repair and build the cable television industry. I hope they can breathe life into their tired, old lungs and make them young and vibrant once again.
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