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"Some analysts however, paint a grim portrait of an unbundled world. Laura Martin, an analyst at Needham & Co., estimates that unbundling would drain half of the revenue, or $70 billion, out of the television industry. Moreover, today's hundreds of channels would shrink down to about 20, she wrote."What do you think? Does the loss of TV revenue represent a "break-up" in the oligopoly of the TV industry? Is lower revenue for the industry a good thing, as in greater competition? Or do consumers benefit from bundling?
What, if anything, should the government do? Read more here.
I think government intervenes, regulates, and monitors much more than we think in several situations. In this instance, I think it is a completely realistic situation where government would intervene to prevent the loss in revenue; however, perhaps they would also allow it for the drive of greater competition. Even though consumers are advocating for streaming options, the "grim" portrait illustrated is too convincing for government to not intervene (I think), in order to keep revenue and advertisements at norm. Maybe this is potentially indicating a rise in cable? With high hopes, the article states that cable aspires to come out on top, perhaps with some form of advertisements to maintain revenue. In terms of my personal opinion, I think the drop in revenue and potential for greater competition could potentially be a good thing.
ReplyDeleteI think that the movement toward single channel providers and online streaming options will break up many of the cable providers in the near future. Cable companies are losing consumers as more turn toward Netflix, Hulu and other services. I think we will see a movement away from traditional cable and toward options based on the internet. This may be in the form of a la carte channels or cable companies offering packages to stream their channels. Since I think many consumers enjoy having a variety of channels I don't expect the move to be toward single channel purchases. I predict that this will lead to several cable companies going out of business because they are unable to adapt.
ReplyDeleteI agree with both Scott and Cameron. I think cable companies need to become more competitive in order to stay in business. However, I don't think the government should have to intervene. I think the cable companies need to adjust to the current market in order to stay relevant. They are no longer the only source of entertainment
ReplyDeleteI agree with everyone, especially Clay. I think that this should fall more on the shoulders of the companies and not so much on government intervention. With these new ways of getting shows and movies, the companies should be the ones adapting to offer different ways of getting television.
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