Commentary

'Video Is Dead' Cries Abound -- But Long Live Digital Services

Video is dead? Who knew? Actually, it seems "video is dead" as a retail business.

Media analyst Laura Martin, speaking to small cable operators, said they need to move their businesses away from video -- and fast. That's because big cable networks will continually look to raise rates, which will hurt  operators' cash flow and profits.

Martin jumps on the bandwagon that consumers can get video anywhere, and typically for smaller costs.  (Hello, Hulu and YouTube!). Other analysts say that's why the bigger cable companies like Comcast and Time Warner want to do something about it (Hello, TV Everywhere), and why content owners are going along with it.

What to do? Continue to move into other businesses like mobile and the Internet.

But this would seem to become much harder for smaller cable operators, since all those "triple play" business ideas -- video, broadband, and phone -- have a much better chance of succeeding for bigger operators.

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Martin urges cable operators to get into more Internet and mobile businesses - but only so far.  She says cable operators should avoid putting programming content online.

Seems that small cable operators are in a quandary. (Maybe one can throw in small TV stations are well). What does one do in a growing digital age that doesn't need their traditional video outlets as much?

Niche consumer markets are tough to find -- and prosper in -- especially when trying to transform businesses that are set up in traditional ways.

3 comments about "'Video Is Dead' Cries Abound -- But Long Live Digital Services ".
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  1. Allan Caplan from Caplan Consulting, July 28, 2010 at 10:54 a.m.

    another reason for the continued success of REDBOX.

  2. Howie Goldfarb from Blue Star Strategic Marketing, July 28, 2010 at 10:55 a.m.

    I think the key is the content. We have HBO and Showtime and 99% of the time they have all these movies and none that we want to watch. Actually thinking of canceling the premium service. I think the smaller operators can compete with better scheduling/offerings.

  3. Douglas Ferguson from College of Charleston, July 28, 2010 at 11:16 a.m.

    Cable is in a quandary, eh? Much like the one the quandary that cable put the broadcasters into. What goes around...

    Technology is a game-changer.

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