Cable TV a la Carte Approach
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Recall that the main article(s) for each of your blog entries must be no older than 4 months old. If you use an older article as your primary focal article, you will be asked to redo the assignment. You may, of course, use older sources to support your discussion but the article serving as the main focus of your paper must be recent.
This final blog entry will be related to your case assignment in that it will deal with Comcast. For this assignment consider the short news article related to Verizon by Albanesius (2014) and the Nakashima (2014) article that discusses a deal made between Disney and the Dish Network. The articles deal with plans to provide video content on mobile devices and on home televisions in an a la carte manner. As you know, Cable companies tend to bundle programming to cause customers to want to buy more premium packages to accommodate their home entertainment desires. The players in the industry have been avoiding the a la carte approach to programming in order to cause customers to pay more through the bundling strategy.
Your assignment will be to present to your blog reading audience an argument as to whether you believe that Comcast is strategically poised to compete with upcoming changes in the environment related to providing an a la carte approach to programming. What should large cable companies like Comcast be doing now so as not to go the way of Kodak?
Make sure you provide at least two very recent articles to support your key points (no older than 4 months old).
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Comcast is losing in a world where technology is changing the way we watch videos. Consider other industries that the internet has laid to rest: The greatest threat of newspapers was its own popularity, and people want the information instantly. In the past, when newspapers published columns, an avid reader thrilled with the columns would copy and paste the columns on the internet, allowing everyone instant free access to the information. This is the same reason companies in the instant video industry have been so profitable. This is also the same reason why cable companies are on the wrong end of the stick. The internet is disrupting traditional industries like cable and TV, and changing them forever. Changing to an a la carte approach might not be enough to help Comcast due to the ripple caused by changes in the pricing structure. In addition, an a la carte approach may hurt the cable TV industry overall, as the fees paid for bundling are used to support all the cable networks. If cable subscribers select only the networks they want to watch through the a la carte approach, many smaller cable companies may cease to exist. Disney, being very popular, would most likely cost customers the most through an a la carte approach. Some customer may even choose to drop Disney due to the high price they would be paying ...
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- MBA, University of California, Riverside
- BSc, California State Polytechnic University, Pomona
- BSc, California State Polytechnic University, Pomona
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