Comcast is back at it again. In February, the FCC voted on a plan to open up the cable box market to competition, which would allow you the opportunity to buy your own, technologically advanced box. Now you won’t have to put up with those terrible out dated black boxes underneath your television sets. You theoretically would be able to purchase your own box instead of paying monthly fees to rent a huge rectangle that someone had rented for years prior.
Comcast freaked out in a predictable fashion, of course they did; cable companies make an estimated 21 billion dollars from letting you borrow their crappy hardware. Sure the boxes let you watch all your little shows in HD, but with some providers, software is still in standard definition, sometimes DVRs only have two tuners and we all know the pain of having those damn messages pop up asking if you want to change a channel or cancel your recording, it’s 2016 man, we should be able to get all the shows.
The cable boxes leased by cable companies, the ones we had in 2014, are the exact same models we had in 2004. There is no incentive to upgrade hardware and innovate like other industries. You may still be using cable boxes that are older than your children and that is probably not a personal choice.
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Comcast later responded, “In response to questions from commission staff, we explained that running our network code directly on third party devices without our application was not feasible for a variety of reasons.”Comcast then went on to say, “The FCC’s proposed set top box mandate threatens to undermine this highly dynamic marketplace, create substantial costs and consumer harms, and will take years to develop.” You know what really creates substantial costs and harms you, the customer; the bullshit cash grab policies that are currently in
As one of the largest content buyers in the country, programming costs make up a large portion of its expenses. Media companies have recently starting increasing the amount they charge for permission to use their channels. This increase in highlighted in Comcast’s financials, which show that the company’s programming expense increased by 8.4 percent in the first half of 2016 (Levy, 2016, A). Resulting from an increase in retransmission fees and the rising cost of sports programming, Comcast expected its overall programming costs to increase 10 percent throughout the entire year of 2016 (Pelts,
At the time of this launch, expectations for the cable industry itself were high: with many rural
As a conclusion it is important to remark that an established brand as it was Netflix, failed to remain at the forefront and not continuously meet the needs of the consumers who demanded updates in accordance with technological communication updates that occurred. The company Netflix was slack and reactive rather than proactive as it should be this situation allowed Redbox took hold of a huge market. On the other hand, the blue waters can go turning into red over time, as other companies may feel very attracted to the new market opportunities that have opened.
The transition will take awhile. On a trip to a big Time Warner Cable market, Los Angeles, last week, I spotted at least a dozen trucks with Time Warner Cable logos on the side, some of them looking brand new. Charter will be replacing those logos and training the technicians in its way of doing
Acquaintances and I commonly discuss the frustration we have with Comcast and their ability to charge ridiculous prices for their services and demonstrate a complete lack of customer service because they dominate the cable industry. This anti-trust issue has been recognized by politicians and various organizations, but nothing has been done to weaken Comcast enough. With significant entry barriers it is understandable why Comcast does not have many competitors, but with an online streaming technology being developed and made available through companies like Netflix, Comcast could have significant competition in the near future. Although there is hope that Netflix and the niche of online streaming will become a problem for Comcast there are several things that must occur first. Netflix has
The case mentions that there is already an emergence of competitive threat from “TV Everywhere” and even though CEO, Jason Kilar discounts the effect on Hulu, the new entrant is
As an individual who is looking to cut cable and pursue a streaming service, I believe that Hulu’s $39.99 Live Stream subscription, as described in the case, could be a strong supplement for pay TV. Although margins for this offering are predicted to be low, I believe that the development of such a subscription illustrates Hulu’s ability to complete market research and listen to consumers. This package indicated that Hulu understands that consumers want Live TV, but wishes to avoid costly bills and wasted
Although Redbox appears to have established themselves as a formidable competitor to Netflix and Blockbuster, they are facing a gruesome reality. The take-home movie rental business is rapidly losing ground to online streaming video directly to consumers’ homes via the internet. Netflix has already been providing this service for quite some time and both Redbox and Blockbuster are feeling the pressure. Blockbuster, Inc. has already declared
At this point, stories about video streaming services attempting to steal money and viewership from Youtube feel older than Youtube itself. Challengers have come and gone, but very few streaming services have managed to stick around and find success, and none of them have become the top streaming service. Google gave up and just bought Youtube instead. But with streaming becoming the primary mode of watching content now, companies still have to try their hand at it, and now Comcast is throwing their hat into the ring. The new Comcast video streaming service will be called Watchable, and even if it's not the future of streaming, it looks as though Comcast video streaming could very well be the future of Comcast.
1. Changes in the US regulatory environment created additional challenges for Continental’s core business: 1992 Cable Act limited the cable TV companies’ ability to raise cable rates whereas costs at market prices reached up to $2000/subscriber. This inevitably led to constrained profit margins
Seems like satellite companies and network tv providers cannot get along, or come to an agreement. Due to the consequences of Dish network and CBS not finalizing a retransmission consent agreement, all CBS cable services have been pulled from Dish network's customers. Both parties release a statement blaming the each other for recent the lost in service. CBS claims Dish Network refuses to sign a fair carriage deal that reflects the current marketplace. CBS also adding the fact that subscribers would now be without their annual Thanksgiving football games due to this disagreement. On the other hand, Dish Network accuses CBS of greed for changing an unfair tax to the Dish customers for free over the air content and contents directly from CBS.
The next set of forces is the threat of new entrants and possible substitutes that the TV service providers industry faces. Possible new entrants into the industry are Verizon, AT&T, Sprint, Apple, and Amazon. All of these entries could pose a strong threat to the industry. They have similar technologies and have the
It is human nature to dislike change, however, it is also in our nature to pursue control. When DVRs first started to gain speed, many marketers were terrified since they were accustomed to working with traditional media for so long. Little did they know that DVRs along with the next progressions of TV (streaming TV shows on Netflix, Hulu, Amazon etc) would be such as asset to the field of marketing. Now they are able to capture their target markets more affectedly than with traditional mass marketing on TV and consumers are able to be in the
By end of 2017, over 15.4 million people in the US will cut their cable. Who can blame them? Cable hasn’t evolved in last 80 years and cost of keeping cable is getting expensive every year. Nevertheless, many people are still paying for cable, when we have streaming services like Netflix, Hulu, and Amazon. Streaming services are a better alternative to cable because they are cost-effective, more accessible, more convenient, customizable, smarter and they are no commercials.
When it comes to watching television shows and movies, streaming websites, such as: Netflix, Hulu, and Amazon, have virtually monopolized the market, and have exceedingly brought down cable and theater sales. The mere thought of cable is