Today, when we look at the pay TV leaders AT&T, Comcast, Charter and Altice, the future is heading in different directions. Let’s take a look at the differences, who will win and which different directions the pay TV industry is moving.
Remember when the cable TV world was just about delivering a quality signal and a growing number of channels? Remember when cable TV was led by cable TV companies? That was all yesterday.
Pay TV grows with new competitors and new technology
The world of pay TV has been changing over the last decade. New competitors and new technology like IPTV lets a growing number of companies move into this space. Streaming TV has begun, and Wireless pay TV using 5G is the next big move.
Yesterday, cable TV competitors were Comcast, Charter, Altice and many other smaller firms in markets nationwide.
Then the Internet created an opportunity for growth in pay TV which changed everything.
Suddenly, companies like Netflix, Hulu and more are rapidly growing companies. Sometimes they partner with traditional cable TV networks and other times they compete.
AT&T and Verizon entered pay TV a decade ago
AT&T and Verizon entered the pay TV space a decade ago with U-verse and FiOS. Since that time, while Verizon hasn’t grown much in this area, they still compete.
AT&T has been very active in the space. AT&T acquired DirecTV and Time Warner. They re-branded the company to Warner Media which includes Warner Brothers Studio, CNN, HBO and more.
They have begun their streaming service called HBO Max and their pay TV services called AT&T TV.
Today, the two largest pay TV competitors are Comcast and AT&T.
Comcast acquired NBC universal several years ago.
Streaming TV and 5G wireless pay TV are next growth engines
Going forward, streaming TV just started and should be a rapidly growing new segment. These are services like HBO Max, Disney+, Peacock and Apple TV+.
Also, wireless pay TV will be another big avenue for growth and change in this space.
Wireless TV and the Internet, or IPTV, will be a very important slice of the pie for all pay TV providers going forward. 5G wireless pay TV and IPTV deliver television to the user over technology that is not traditional cable TV.
This will put growing competitive pressure on traditional cable TV companies like Comcast, Charter and Altice.
Looking forward, the future of pay TV looks nothing like it looked yesterday. Today, leaders in pay TV are AT&T, Xfinity, Spectrum and Altice.
Who will the leaders be tomorrow? That’s the question every investor wants to know today. Expect plenty of challengers and changes as the industry continues to evolve.
Stay tuned. Things are just starting to get interesting.
