Two Years Before Time-Warner Cable
Posted on December 9, 2011
Earlier this week Holman Jenkins of the Wall Street Journal provided implications (1) about the ultimate potential of Wi-Fi and unlicensed networks and (2) that the Cable industry is not really “about” television anymore.
For example, he quoted Time-Warner Cable’s strategy chief, Peter Stern: “We’re basically a broadband (Internet) provider….As a convenience to our customers we (also) package and distribute television (programming)”.
Inside Digital Media subscribers got the word two years before Mr. Stern in our “Cable Operators Will Abandon TV” post and podcast on December 5, 2009. The viewpoint created a lot of flak at the time.
In short, we concluded cable operators would eventually abandon television service for two reasons. First, Internet services are much more profitable. Second, cable networks like ESPN will constantly pressure CATV operators to raise subscriber rates or accept lower profit margins.
Download two minute audio narration here.
We recommended that CATV managements begin to focus on providing increasingly reliable and lightning-fast Internet while preparing for the day when it would be wise to divest or spin-off the pay television service. Unlike you, Peter Stern was not an Inside Digital Media subscriber. Read more…
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Twenty Months Ahead of GigaOm
Posted on September 1, 2011
Last week market researcher GigaOm critiqued the CATV industry with an article entitled “Forget TV, broadband is the future of cable.” Apparently their analyst was prompted by what he termed a “surprise” comment from Time-Warner Cable’s CEO that “broadband was becoming the company’s anchor service.” The analyst then proceeded to explain that profit margins were higher in broadband and it’s really the prime service consumers want anyway.
Download two minute audio narration to iPhone, iPad, or iPod here.
Such conclusions fail to be news for Inside Digital Media subscribers since we provided much the same analysis in our December 5, 2009 podcast/post entitled “Cable Operators Will Abandon TV.” That’s nearly two years before GigaOm.
If you want market knowledge ahead of your competitors subscribe to our podcasts here our regular newsletter here – all at no charge. Read more…
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Third Internet Pipe
Posted on June 20, 2011
Earlier this month, the CEO of Time-Warner Cable publicly recognized the primacy of Internet access over traditional video services. Glen Britt said, “People are telling us that if they are down to their last dollar, they’ll drop broadband last.” Consequently, he anticipates a future marketing emphasis on “Single Play” Internet access as higher priced “Triple Play” bundled Internet-TV-Voice packages become less attractive to subscribers.
Download four minute audio narration to iPhone, iPad, or iPod.
Yet it appears Britt wants to implement “Single Play” in a manner failing to save consumers money. For example, he predicted consumption-based pricing which means the more Over-the-Top (OTT) video subscribers watch, the more they will pay. Additionally, he wants to charge subscribers a premium for OTT-videos merely to have them available for mobile devices. Representing consumer interests, David Pogue of The New York Times laments metered pricing “is one crazy, scary development” that could strangle the promise of cloud computing in the cradle. Read more…
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Should Apple Acquire Time-Warner Cable?
Posted on January 31, 2011
Actually this is a 2011 prediction by blogger, author, and PBS TV personality, Mark Stephens who is better known by his pen name Robert X. Cringely. Consider the following points.
First, Apple’s future is hugely dependent upon an unfettered Internet. Yet ISP service is dominated by the CATV and telephone industries which have powerful economic reasons to discourage Internet growth. The telephone companies still make tons of money from circuit-switched landline telephone subscribers. Similarly, CATV operators generate the bulk of revenues from conventional Pay TV services.
To listen to audio narration click here now (six minutes).
As computing devices from smartphones to desktops get steadily more powerful consumers increasingly want to use them for high bandwidth applications including the consumption and distribution of Digital Media. The trend crashes head-long into conventional telco and CATV services. For example, inexpensive and versatile services like Skype could obsolete circuit-switched telephony overnight if ISP holding companies adopted the spirit of net neutrality. Instead they respond by providing a more limited-feature form of proprietary IP telephony whose principal advantage is greater bandwidth allocation. Read more…
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Metered Pricing for Internet Access
Posted on April 16, 2009
Timothy Karr, Campaign Director, FreePress.net
If you would like to learn about efforts by Time Warner Cable and other broadband ISPs to test metered-use pricing of Internet service in selected markets, this interview is for you.
Our guest today is Timothy Karr who is the Campaign Director at FreePress.net. His organization is about six years old and is focused on policy issues relating to media. It is funded by various private foundations and individuals and does not take donations from corporations. Read more…
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