Commentary

Media Insights Q&A With Dr. Angelina Li, AHL Consulting Inc

Dr. Angelina Li is a member of the CTAM Research Committee and the founder and president of AHL Consulting, Inc.  The company was founded in 2000 and works across a range of disciplines,  from demand forecasting and market segmentation to customer satisfaction measurement and competitive benchmarking.   

My full interview with her can be viewed here.  The following is an excerpt:

CW: What do you see as the next big opportunity for cable operators?

AL:  I think the next big opportunity for innovation in the cable industry is for creating an integrated wireless network of all the devices used within a household inclusive of TVs, computers, storage appliances, laptops, tablets and smart phones.  Such integration will make use of Internet Protocol (IP) and enable them to share content across disparate appliances as well as talk to each other.  Right now things like DVR for the most part are confined to the TV that the cable box is connected to, so in effect the viewer is tethered to that particular TV set. 

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With the advent of 4G technology and wireless broadband, and the increasing popularity of mobile devices like laptops, tablets, smart phones, etc., interconnectivity of media is becoming quite critical.  Constraints on mobility are quickly becoming an intolerable hindrance.

Now you have something like the ‘TV Everywhere' initiative by companies like Comcast and Time Warner that acts as an evolution of DVR and VOD.  It allows the consumer to use cable operators (or their competitors) as the single source of programming across different appliances (such as TVs and computers) and regardless of where they are geographically located as long as they can access the Internet.  This will afford consumers a new level of convenience in their information consumption and communication.

This is also a defensive opportunity -- a way to protect cable operators' position as the main provider of Internet connectivity at home and the primary distributor of content for TV as well as for its new incarnations such as smart-phones and tablet computers everywhere.

Once you are outside of the home and you rely on the wireless network, say the 4G network, you will realize that it is not as fast as what you get inside your home with the cable broadband connectivity.  Basically, I think the next opportunity for cable operators is not so much a moving away from television but more so a branching out... an acceptance of the fact that TV is going the way of the landline and becoming mobile. Where cable companies failed to capitalize on cellular technology early on, they have the opportunity to embrace and evolve with wireless technology within the home -- and to some extent, also outside the home.  In short, cable operator must create an integrated network using Internet protocol which gives the consumers ubiquitous content availability and connectivity.

CW: And what do you see as the greatest challenge for operators in the next couple of years?

AL:  Going along with the discussion on the next big opportunity for cable operators (i.e. the integration of mobile devices, the advent of the ‘TV Everywhere' type service), I think the biggest opportunity also presents the greatest challenge -- and that is, how do cable operators build a business model for this type of network?

Because this move of transforming cable -- which has been a television-based medium since its inception -- into the realm of Internet is unprecedented, there's really no business model in place.  How do you make a profit out of this instead of only using it as a way to appease customers and stay even with the increase of over-the-top video and the new prevalence of mobile devices?

I think it's important for cable companies to focus on really increasing their technological capabilities and marketing these changes in a way that is understandable and appealing to the general populace.  You can see how important it is in the way phone providers battle with each other and trump up the advance from 3G to 4G and the subsequent fervor displayed by consumers.  It's entirely possible for cable companies to provide households (which presently receive around 20 mbps in the US) with up to 100 mbps in Internet service, which some cable companies are doing, but it is something that will take a long time for wireless companies to match, if they can match it at all.

The thing is, the problems facing cable operators have completely transformed from being about content and viewership and ratings to almost a purely technological discussion.  This is the new reality and the landscape is changing so very fast.

CW: Angelina, how can we get in touch with you?

AL: Thank you, Charlene. My website, www.ahlci.com has all my contact information.

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