What Should Cable Do Next?
That's the question on the minds of attendees at the annual National Cable and Telecommunications Association convention held this week in Atlanta. The cable TV industry has invested billions in recent years to launch new services such as High-Definition TV, Digital Video Recorders and Video on Demand. However, the satellite industry has kept pace with (and in some cases surpassed) the cable industry by rolling out its own new line of expanded features.
So, cable operators now have some tough choices to make. Should it continue to invest heavily in traditional TV features such as high-def and DVRs, or should it expand its telephone and Internet service to compete with the telephone companies?
Or, should they try to do both?
Of course, the answer right now is both. With telcos AT&T and Verizon now launching new TV services, cable operators believe they can't afford not to offer telephone and Internet service as well. Their concern is that consumers will prefer a provider that offers everything in one package.
However, I believe that history will show that's a misjudgment. Consumers want great service and I think they're comfortable getting it from multiple companies. It's not necessary for a TV provider (or telco) to offer both TV and data service. TV viewers will pick the company with the best programming lineup -- and Internet and phone users will do the same with communications features.
Consequently, I would advise the cable industry to concentrate more on its core business: television -- and let the telcos handle the rest. I realize that's a daring approach that flies in the face of prevailing wisdom. (Today's executives don't like to fly in the face of prevailing wisdom.) But in the long run, I think it would make the cable industry even stronger and a more formidable opponent to both satellite and the telcos.
When companies try to provide something for everybody, they often wind up providing nothing for anyone.
To learn more about this week's convention, click: Here
So, cable operators now have some tough choices to make. Should it continue to invest heavily in traditional TV features such as high-def and DVRs, or should it expand its telephone and Internet service to compete with the telephone companies?
Or, should they try to do both?
Of course, the answer right now is both. With telcos AT&T and Verizon now launching new TV services, cable operators believe they can't afford not to offer telephone and Internet service as well. Their concern is that consumers will prefer a provider that offers everything in one package.
However, I believe that history will show that's a misjudgment. Consumers want great service and I think they're comfortable getting it from multiple companies. It's not necessary for a TV provider (or telco) to offer both TV and data service. TV viewers will pick the company with the best programming lineup -- and Internet and phone users will do the same with communications features.
Consequently, I would advise the cable industry to concentrate more on its core business: television -- and let the telcos handle the rest. I realize that's a daring approach that flies in the face of prevailing wisdom. (Today's executives don't like to fly in the face of prevailing wisdom.) But in the long run, I think it would make the cable industry even stronger and a more formidable opponent to both satellite and the telcos.
When companies try to provide something for everybody, they often wind up providing nothing for anyone.
To learn more about this week's convention, click: Here
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