There’s an opinion piece by CableFax [http://www.cablefax.com/cfp/just_in/Should-Cable-Let-Go_35615.html] that suggests that perhaps the time has come for cable operators to open up their “closed” networks, most notably by relaxing the industry’s grip on the set-top box environment. The article points to Apple’s success with the iPhone App Store and argues that it is imperative for cable to similarly rethink its business models, so that it can more effectively position itself against online viewing at the PC and via other Web-connected CE devices.
I have to respectfully disagree.
Not long ago, the conventional wisdom was that the cable operators were in danger of losing major market share, but the “TV Everywhere” model is changing that. I’ve heard people call cable “slow moving,” but to my way of thinking, the operators seem to adapt “just in time”. I think it’s interesting that this article uses the iPhone analogy, because that’s precisely why cable will continue to succeed. It’s not like the iPhone is some processor-intensive piece of super hardware or that other phones can’t do most of what the iPhone can do (in fact, most people agree that it doesn’t make a very good phone); it’s that the iPhone makes it easy and convenient to do all those things. That’s what cable has always been able to provide: Easy and convenient access to high-quality video entertainment. Get the triple-play and simplify your life even more.
There will always be the techies who want the latest and greatest, but let’s face it: most people just want a high-quality experience served up simply and easily. With network-centric technologies like ActiveVideo, cable can provide more than enough functionality and interface design to compete with advanced set tops. In addition, cable operators are now making inroads to deliver content through the Internet as well. Couple that with the strength of the traditional content relationships between operators and programmers, and it’s clear that cable will continue to have the best selection of content, it will be conveniently accessible anywhere, and it will all be on one bill.
Once again, cable will adapt “just in time.”
