A new report finds that consumers are becoming more comfortable building their own bundles of video services. That’s bad news for traditional cable companies.
“Growth In IP Delivered Video Will Further Erode Cable’s Dominance,” reports research firm Across Platforms, which tracks hundreds of cable and related firms.
“The cable industry has already been hammered by the overbuilder and satellite companies,” the report notes.
“Consumers are feeling more comfortable bunding their own video services especially since the advent of Netflix and Hulu. Beyond the introduction of ‘skinny’ bundles consumers will most likely go outside cable to select stand-alone video apps from networks rather than pay their traditional provider. It is likely then that this market pressure from technology disruption, related to affordable bandwidth and devices, will reshape the MVPD [multichannel video programming distributor] marketplace over the next 10 years.”
“Overbuilder” refers to companies such as AT&T and Verizon which offer their own Internet/video services through U-Verse and FiOS respectively.
However, cable firms are getting a break – at least for the time being.
“With the recent stutter steps of Verizon FiOS and ATT U-verse that have slowed down the growth of the overbuilders gives cable companies a temporary reprieve as they figure out how to deploy their HTML5 chess pieces.”
HTML5 is markup language used for structuring and presenting content on the World Wide Web. It is the fifth and current version of the HTML standard, according to Wikipedia..
Read more at:
https://acrossplatforms.com/
