Atlanta, GA (PRWEB) November 23, 2013 -- Now it looks like both Comcast and Charter may be getting ready to enter a bidding war to acquire Time Warner Cable, according to USA Today, Nov. 22.
Tech analyst Jeff Kagan offers comment.
“This is a sure signal of further industry consolidation we can expect going forward in the pay-TV industry. Who will win? Will it be the larger Comcast or the smaller Charter?” Asks Principal analyst Jeff Kagan.
“The cable television industry changed ten years ago. That’s when the small Comcast acquired the largest cable company, TCI then owned by AT&T. That turned Comcast into the largest cable television company. Now the cable television industry is getting ready for another round of consolidation.” Says Kagan.
“This time the industry looks much different. Last time the industry was made up of many, smaller competitors and none of them faced any real competition at the time. Today there are fewer and larger competitors, and they will consolidate further. In addition, the pay-TV industry is much more competitive today.” Says Kagan.
“Today the cable TV company may compete with AT&T Uverse or Verizon FiOS or Aereo, satellite TV or other competitors using IPTV technology. Today the cable television industry is losing customers, not gaining them. Today there is much more at stake and cable TV companies have much more to lose. They must get this right.” Says Kagan.
“Merging will create larger cable television companies. However that will not stop the customers from leaving. So whether cable television companies are large or small, they will still serve fewer customers this year than last year. That’s the problem the industry needs to address before it’s too late. I would sure hate to see todays cable television giants go the way of Blockbuster and Hollywood Video.” Says Kagan.
“I think Comcast would love to sink their teeth into Time Warner Cable, but the next question is would regulators approve the number one company acquiring the number two company? Regulators have a tendancy to say no to this kind of deal.” Says Kagan.
“Either way this battle for Time Warner Cable will be an interesting one to watch in coming months. Stay tuned.” Says Kagan.
About Jeff Kagan
Jeff Kagan is a Technology Industry Analyst, consultant and columnist. He is regularly quoted by the media over the last 25 years.
He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.
Kagan is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst.
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SOURCE Jeff Kagan, Tech Analyst, Industry Analyst