What does cable-company consolidation mean for it’s customers?

Let me be brief.

Cable companies are racing to reinvent themselves as the cord cutting is at an all time high.  Over the past 12 months – the cost for sports and TV continue to rise, while in the past 12 months – more than 500,000 TV subscribers have declined their existing subscriptions.

The cable consolidation is more about broadband subscriptions and much less about traditional TV.  (There are more broadband than TV subscribers.) You see that type of TV had a great 50 year run – but it’s over.  The way TV consumption is required for today is based on when/how/why that streamed is delivered on demand.  The shift began many years ago – when the consumer said they no longer want to watch their favorite show and/or media on a pre-determined date and time.  (IE: VCR-> DVR -> NetFlix, Amazon->Spotify /etc)

The cable companies know it’s a losing battle – so what happens?  Mergers and Acquisitions!  We’ve seen this happen in every industry — and it’s only right that it’s their turn. These cable companies know a storm is coming – and it’s name is Google Fiber.

charter

You see there are five things that will happen when this duopoly is completed with Charter Communications merges w/Time Warner Cable and acquires BrightHouse Networks.

  1. Greater Speed & Investment – in broadband networks; allow wider deployment of WiFi networks in public places; and expand optical networks for business. (That’s a plus for the consumer!)
  2. Fewer Choices – If the merger is approved, the combined company is expected to serve almost 24 million people in 41 states. (We move closer to companies being the only game in town!)
  3. Higher or Lower Bills – While it’s too early to tell – your broadband speeds should increase, but I’m leery because your monthly bill could also.  (What merger of a privately owned company hasn’t lead to increased billing?)
  4. Unhappy Customers – Customer Service is key and TWC ranks last in any customer satisfaction survey.  (When I lived in Queens, NY – I remembered the frequent outages and speaking w/ unprofessional customer service reps.)
  5. An Altered Landscape – The traditional (legacy TV) is DEAD!  It’s not coming back and cable companies are playing catch-up w/ Apple, Google, NetFlix, Amazon, Hulu & Spotify.

A storm is coming! That storm’s name is Google Fiber.

1 Comment

  1. Website

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