Real Predictions
Last issue we weren’t so serious.
This issue…well, serious is in the eye of the beholder.
But, unlike normally, I am being serious. This isn’t the same media landscape in which cable grew up…while cable TV helped shape this new world, the changes happening are accelerating. It is a multi-platform world now. But here’s what I think will happen in this newly hypercompetitive world this year:
Cable Television
The cable industry has weathered the onslaught from the sky and returned to adding subscribers instead of losing them…but how will cable do in this new — with telco entries into the market — near-zero-sum game?
Pretty good, I think.
Adding subscribers is even going to accelerate a bit this year as cable companies will add subscribers at a pace slightly ahead of the growth of TVHHs.
The old Adelphia systems will be upgraded and both Comcast and Time Warner Cable (newly public, too) will make them fully VoIP-ready by the end of the year…making EOY ’08 the chance to report big numbers for both.
The last big market without a truly dominant player will consolidate under Time Warner as it acquires the Los Angeles area systems of Charter. Meanwhile, two cost factors will continue to dominate news and panels: retransmission consent and sports rights. The shameful antics of Sinclair Broadcasting will continue, and embolden other broadcasters.
DBS
Satellite will grow just a little, a bitty bit more slowly than historical paces as DirecTV changes hands and then engages in serious discussions of "shared resources" (most likely high-definition capacities, some sort of shared broadband play and a migration to a shared next-generation video platform) with new neighbor EchoStar. All in the name of leverage and scalability.
Meanwhile, WildBlue will go on a satellite broadband subscriber tear this summer with special packages tied to one of the satellite video purveyors.
Telcos
There are really four telco initiatives playing an offense-based on defense against cable.
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Verizon’s FiOS is FTTH and really a next-generation cable system. It will have some successes…successes that almost exactly will mirror cable’s VoIP penetration.
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AT&T’s U-verse is an IPTV attempt at scalability and is sort of an Internet protocol version of a next-generation cable system (something the engineers at Comcast are developing as well in a slightly different manner). It will be a serious disappointment…especially to analysts and Wall Street.
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AT&T’s HomeZone — DSL plus Dish — will do better than U-verse…but AT&T faces real problems in defining just what it is trying to offer to whom. And judging from their advertising that promises everything yesterday, this will disappoint as well.
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The NRTC plus SES Americom is attempting to bring DSL plus IPTV to America’s smaller markets. This attempt will rise and fall depending upon the individual independent telco.