Sunday, July 19, 2015

The rule of cable television awakens from his long sleep | The … – Trade

TV of the future will be mobile and flexible, available everywhere. Online services such as Netflix failed to recognize and exploit this new trend, but large cable companies United States opposed it for a long time, until finally now beginning to get moving.

With self-produced series as ‘ House of Cards ‘, the online video service Netflix conquered the world TV from its California headquarters in Los Gatos.

After the failed merger between Comcast and Time Warner Cable (TWC), now the media czar John Malone wants to attack with Charter Communications.

Unlike the previous model of the family gathered around the television set, now the video are often being away from home, for example YouTube , and consumption is ” on demand “in smartphones, tablets or laptops.

The model that prevails is that of companies like Netflix, Hulu, HBO Now or Amazon Prime: in exchange for a flat fee you have access to numerous series and films.

The most successful of all is Netflix, which is already present in more than 50 countries and has more than 65 million customers , and that the market is changing in America.

To expand the business with videos and ads online, the mobile phone giant Verizon recently bought by USD 4 400 million AOL, one of the pioneering companies Internet .

Those who so far had not been launched were the big cable consortia. At first it seemed that leaders like Comcast and TWC market – they need not flinching as they continue to dominate the market and in many parts of the United States are the only option.

The pay TV is more expensive in this country than in any other industrialized although the service is considered bad. Complaints are old, but the new is you have alternatives. Services streaming launched a new movement under the slogan “cut the cord” (short cable) for a TV exclusively online.

Comcast and TWC control the world of cable along with Verizon and AT & T , and therefore antitrust authorities blocked the 2015 merger between the first two, because with their union would acquire almost 60% of the market for broadband .

“There is an online video market with new business models and variety of consumers, and the merger would have involved an unacceptable risk to competition and innovation ” notes in his argument the Federal Communications Commission (FCC).

The decision was welcomed by the CEO of Netflix, Reed Hastings . As your company can get to use around a third of broadband in moments of great audience, telecommunications companies like Comcast will demand a higher payment for the intensive use of the network.

Hastings argues instead that suppliers should raise the Money of end users and exclusive content Netflix help them sell their Internet connections faster and faces, instead of being a burden.

Shortly after the failure of the agreement with Comcast, Charter Communications, which is number four among large US cable companies launched a Offer by USD 55 000 million for TWC . If the antitrust authorities give the go-ahead to the merger, it will be one of the largest in US history.

Liberty Media , the rule of entrepreneur Malone, who controls Charter, would become the world’s largest broadband provider with 46 million subscribers. US Charter and TWC would add a 30% market share of the connection High speed .

Netflix, which had protested the plans of union between Comcast and TWC, supported by business with Charter change. The reason is that Malone promised not require extra payments to Netflix, perhaps to guarantee the support of the authorities antitrust .

However, Charter will fight to Netflix with an offer own online content and mobile . And Comcast announced this week a service for online content in the United States to be called ‘ Stream ‘.

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