August 16, 2011

US Cable giant focuses on broadband rather than TV

It's not just Virgin Media who see the future as broadband over traditional TV services. As my earlier post about Virgin's strategy has provoked what's best described as a "mixed" response (sorry, Square Eyes!) I thought the following would be of interest as it illustrated that the VM strategy is not unique. The full article can be found at Gigaom.com
The majority of [US cable company]Time Warner Cable’s subscribers and the bulk of its revenue still come from its traditional pay TV service, but that is changing — and fast. As a result, the company is betting on broadband to lead it into the future, due to wider adoption of high-speed data services at the same time TV subscribers are declining. In an interview with the Wall Street Journal Monday, CEO Glenn Britt talked up the company’s broadband business as the company’s “anchor service” of the future.“Clearly the relative importance of the video business has declined over time,” Mr. Britt said in an interview. “I think broadband clearly is becoming the anchor service.” Pay TV services still account for more than half of Time Warner Cable’s top-line revenue, according to the WSJ. But the gap between TV revenues and broadband revenues continues to narrow, as pay TV subscribers depart and new broadband users join. Time Warner Cable isn’t alone — the broader [US] pay TV industry lost a record number of subscribers in the second quarter, due in part to the down economy and weak housing formation. But there’s also the specter of cord cutting hovering over the industry, as a growing number of viewers turn to online video services for entertainment. It’s not just that broadband continues to make up a bigger portion of Time Warner Cable’s revenue and users, but the margins on broadband are much better than those for TV services.

2 comments:

Resdent Bipolar said...

The future is definitely the web. In areas capable of hitting speeds of 30Mbps and more, it's perfectly possible to use the internet for pretty much everything media related.

The ability to build and buy HTPCs (along with a nice 50" Full HD Monitor or even any TV with HDMI/DVI/VGA input) at extremely competitive prices means STBs and the likes of TiVo may eventually go wasted. Subscription as well as PPV services online will allow the user to watch any TV channel and a HUGE mix of online; on-demand content on the likes of YouTube; SeeSaw; iPlayer; ITV Player and more all over the web and from an ultra-silent mini PC in the front room.

I think HTPCs are the best way to watch TV, ever. What do you think?

Glenn said...

hello virgin media viewers
good news (straight off the presses)
MORE HD CHANNELS

GOOD FOOD HD
ALBI HD
WATCH HD
DAVE HD
EDEN HD

no confirmed date yet

we are getting these hd channels. due to sale uktv platform.

hope you like good news