Disruption is coming to the TV industry and there will be a new set of distributors leveraging fundamentally different cost structures to the old regime.
Now, I am not one to argue that TV is going away. But for millions of TV users fed up with outrageous fees provided to cable services provider (COX, Time Warner, Comcast, YouSee etc.) streaming services like Netflix, Hulu Plus, HBO Nordic are slowly becoming “good enough” alternative and roughly 1/3rd the cost of basic cable. The phenomenon is called “Cord-cutting” and has been a growing trend since Netflix liberated the common user from traditional cable services.
This is the essence of what I call “disruptive change.” It’s transformed a number of industries and is starting to do the same in the world of television.
The next platform in technology to host significant changes
The question though, is just how fast this disruption will take place and what form it will take. This kind of innovation makes it easy to think that the days of cable services providers are numbered. The thinking goes that if traditional media companies don’t embrace consumer demands for unbundled content and offer direct, a-la carte pricing these new entrants will simply replace them.
The same phenomenon occurred with mobile vs. fixed telephony
For several years it seemed that mobile was sustaining to fixed or that fixed was immune due to lock-ins. The fixed telephone incumbents insisted that the data was inconclusive. Then the trickle of abandonment turned into a deluge. The quality of service for mobile kept increasing and, with data, it became clear that the mobile devices could unleash unfathomable functionality and value.
And so it goes. A business dies first slowly then quickly.
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