Cable TV in an Open World

Steve Rubel writes about three possible scenarios:

1) The Cablecos Embrace Change and Re-address the Economics
Right now cable and satellite TV are very inefficient. If you hate sports, you’re out of luck. You still need to pay for it since it sits on your deck. The smart cable/satellite companies will begin to experiment with a-la-carte pricing. Further, they will make sure their set top boxes can connect to the Internet, allowing you to choose what goes on your set from a virtually limitless choices.

2) The Cablecos Simply Become Plumbing
Cable and satellite companies are not exactly known for their speed. The tech players mentioned above and others, such as Google and Yahoo, could rush in to provide subsidized boxes for your TV if you were to subscribe to their so far non-existent IPTV services. They will deal directly with the networks and reduce the value that your cable company offers to just pipes. This will turn their services into plumbing – commodity bandwidth.

3) A Hybrid Scenario
Under a third scenario, both IPTV and cable co-exist together in your living room. They are used for different purposes. Cable recognizes that they offer the greatest value in serving up live and local and leave the canned national content to go the way of IPTV carried by others.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.