Cable operators are on the verge of a massive and remarkably easy capacity upgrade. Where it has begun, fixed incumbents are already being forced to deploy fibre. Gigabit WiFi is coming too, so mobile operators are very much concerned.
Netflix’s success in the US and in Western Europe has demonstrated that consumers are willing to change how they watch and pay for TV and movies. As a result Netflix’s OTT proposition is challenging traditional pay TV models and changing how new broadband services are looking at content. For some players Netflix is a threat and for others an opportunity. So, how should content owners, channels, pay platforms and broadband providers respond?
Verizon and Comcast have invested in high bandwidth fibre and cable networks, whereas AT&T has until recently focused on U-Verse, an IPTV play. Which strategy is winning out and why? The answer is surprising and may transform the US and other markets, and there are parallels with Apple and Samsung’s ‘deep value’ strategies of investing in assets that are hard to replicate.