There are many disruptions taking place at one time. Technological convergence is bringing about new stacks that integrate with each other in ways unforeseen before.
About 15 years ago, we saw the advent what was termed "cord cutting". This was a shift away from the traditional cable package. It was a move that was based upon the Internet where people found their video content online.
This was aided by the success of Netflix. As other streaming services showed up, including YouTube, people found ways around the need for the cable subscription.
Part of this was the continued increase in price that cable companies kept pushing.
We are witnessing the second iteration of this, called Cord Cutting 2.0.
We are seeing history repeating itself.
Over the last decade, internet providers raised their prices to the point it is squeezing household budgets.
This is causing people to consider other options. As alternatives arise, we are seeing people taking advantage of them. At the same time, companies are getting aggressive in their approach, realizing they can scoop up some business.
We can see clearly that not only are cable customers still departing, but also ditching their Internet service.
It is a trend that started a number of years back. This is also accelerating at an increasing rate.
If this trend continues, Spectrum and Comcast will lose more than 3.5 million TV customers in 2024. This is on top of the more than 3 million cable TV customers Comcast and Spectrum lost in 2023.
When you consider the average bill for these services, it is a number that gets rather large. This is revenue that is lost each month.
The traditional carriers are getting hit from all directions. When it comes to Internet service, the field is getting crowded.
It starts with satellite providers. We have Starlink from StapceX and another service from Bezos Blue Origin. These are going to provide service globally.
Then we have the mobile carriers. It is looking like 5G can be a viable competitor in many areas. This is bringing, in the US, companies like AT&T and Verizon into the arena.
Here we see a shifting in the market.
This is causing them to get more aggressive in their plans.
Naturally, services are a bit slow to roll out. That said, they are expanding operations bringing more options to people in each area.
Spectrum is owner by Time Warner. This is one of the long time Hollywood studios.
We have covered the plight of Hollywood over the past year or so. If the infrastructure revenue starts to decline, this could really affect the bottom line of the company.
The moats previously enjoyed by companies are eradicating. industries are merging into each other as the operations get less expensive to set up.
Big Tech is stretching its wings. Here is another example where an entity like Amazon is penetrating new markets. On the flip side, how long until mobile operators start to enter the broadcast realm?
Companies will do what they can to hold onto customers. We are also going to see others getting aggressive in trying to poach what they can.
