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Cable Execs Are Absolutely Terrified of Streaming Competition

For years, we noted how cable TV providers have been completely unwilling to compete on price and flexible channel lineups. With the rise of streaming alternatives like Sling TV, DirecTV Now -- and with numerous other services waiting in the wings from the likes of Amazon and Apple -- there's a growing sense of nervousness among cable executives. Most of them that realize streaming video is going to dial up the level of TV competition -- potentially substantially. That's why even Comcast is securing the licenses for a nationwide streaming service outside of its traditional footprint.

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The fear among cable and broadcast sector executives is palpable.

Discovery CEO David Zaslav told reporters this week he believes that streaming competition will finally force all major TV providers to offer real, streaming video services outside of traditional broadband footprints. This would, Zaslav claims, create "mayhem" in the industry, and result in a "a street fight" between traditional cable operators and streaming services.

"Every cable operator is probably lying and waiting, and they need to have their own over-the-top solution," Zaslav said.

But he then proceeded to state that cable operators need to be "very careful about pulling the trigger" in part because of a Trump administration that appears "quite favorable" to the industry, he said. In other words, that's a CEO urging the cable sector to avoid rushing toward streaming competition because, under Trump, they may not need to compete quite as intensely. Especially if you're Comcast, whose growing broadband monopoly and implementation of unnecessary usage caps help soften the blow from cord cutting.

Traditionally, cable companies have avoided offering truly compelling and inexpensive streaming video services for fear of cannibalizing much more profitable legacy TV services. That dynamic changed slightly with AT&T's introduction of DirecTV Now, though AT&T's focus remains decidedly on upselling customers to traditional DirecTV video service. Charter, Verizon and other large ISPs are now watching and waiting, wondering ff they too need to take the "over-the-top" nationwide streaming plunge.

Zaslav proceeded to insist that this rush to compete with streaming alternatives would "destabilize a very stable and strong growth industry," calling it a "very tricky challenge" for the industry. Of course by "destabilize," he means the cable and broadcast industry would actually have to work a little harder to earn your programming dollar, a real nightmare scenario to be sure.

Most recommended from 23 comments


elbertdavis
join:2016-02-08
Crown City, OH

29 recommendations

elbertdavis

Member

scared

If Cable ISPs weren't scared of streaming, they wouldn't have forced data caps on consumers. "Oh, you don't want to watch television the way we want you to? Then pay us extra for not watching it correctly."

Packeteers
Premium Member
join:2005-06-18
Forest Hills, NY
Asus RT-AC3100
(Software) Asuswrt-Merlin

14 recommendations

Packeteers

Premium Member

scared exec = higher isp pricing

my isp only service is up 50% this past year thanks to cord cutters
and will rise another 33% next year thanks to streaming disruption
then politicians who took bribes that allowed this monopoly to exist
will all wonder why they got voted out of office in 2018/20.

I'm old enough to remember when the government broke up AT&T
it would have been inconceivable back then for us to later allow our
broadband and media to all be controlled by a handful of companies.

Anonb1885
@rr.com

9 recommendations

Anonb1885

Anon

Cable Execs

Good. I'm glad they're terrified, but I worry they'll make the necessary adjustments. Let's hope competition can stop them.

maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA

8 recommendations

maartena

Premium Member

Then stop forcing bundles and MAN UP against the content owners.

If the cable execs are so afraid, they have to figure out why people are leaving traditional cable.

Here is a few hints:

1) People may want Comedy Central and TVLand.... but NOT the 8 other Viacom channels full of crap. Stop bundling channels, and stop rolling over to channel owners who demand an "all or nothing" deal.

2) People may want to choose a nice set of regular channels, without having ANY sports at all. Typically, there IS a bare basic channel set without sports, but as soon as you want to add some cable channels like e.g. TNT or TBS or CNN or Fox News..... you are forced to pay for a bunch of sports channels.

3) People are tired of paying lease fees for tuners and DVR's. Allow people to buy their own equipment, and only charge a minimal service fee of like $2 for each piece of equipment a customer wants to connect.

The reason why channel streaming such as DirecTV Now and Sling TV are becoming more popular is because they still offer nice channels.... without the some of the things mentioned above. Sure, ESPN and other sports channels may be part of the package, but at least you don't get a buckload of bundled channels, you get to choose your own equipment, and you are not limited to your own house to watch it.

If cable execs are terrified, they are going to have to BUCK IP, grow some balls, and tell the content providers to take a hike with their high prices, and run the risk of losing customers. If someone doesn't start to stand up, no one will, and then your cable business is doomed anyways. See how it goes for you when you have to issue new 5-10% increases in 2018, 2019, and 2020..... see how that goes for you.

Evergreener
Sent By Grocery Clerks
join:2001-02-20
Evergreen, CO

3 recommendations

Evergreener

Member

More accurately...

Traditionally, cable companies haven't been able to offer truly compelling and inexpensive streaming video services due to platform delivery restrictions written into their existing programming agreements that have been dictated by the broadcast and satellite networks.

That of course is all changing VERY rapidly right now and one would be crazy to think that Comcast (in particular) won't be ready to offer a standalone OTT service in and/or out of market when it makes sense for their bottom line.

I expect that the vast majority of SlingTV, Sony Vue and DirecTV Now traffic is delivered to homes is over cable modems. Which is going to make the wireless space and how Comcast approaches mobile wireless very interesting over the next few years.

I still see this as more of a duopoly tit for tat between AT&T (DirecTV, Time Warner) and Comcast (NBC, +Wireless Provider TBD?) rather than between the cable, satellite, telco and wireless industries as a whole.

battleop
join:2005-09-28
00000

2 recommendations

battleop

Member

Absolutely Terrified?

Cable executives might be concerned but they are not terrified. No one is going to get a pay cut and no one is going to put their jet up for sale.