Tuesday, January 02, 2007
As at&t spends $1B over the next 3 years (ain't much) and VZ spends even more on fiber networks to the consumer in order to offer TV and triple play, you have to wonder why so late a gamble. At this time, DISH has 13M and DTV has 15M subs. The pie is static. Like cellular, you have to steal clients from a competitor. No new channels -- just the same 500 channels of junk. TV has become a commodity, meaning it is mainly about price. It's also a matter of delivery - how do you want your TV? Via cable, satellite, fiber, cellular/wireless, or Intenet? As this article points out, downloading TV shows is becoming prevalent: iTunes, YouTube, network websites, and more. The RBOCs are jumping into TV at a time when the wheels are coming off that content delivery mechanism. And it is an expensive foray too. (I just don't see the ROI).