Traditional Cable TV Providers Days Are Numbered
As we have observed in recent history, technology brings changes. Mostly for the better and convenience. Unless you’re a mom and pop store, or a cable tv provider. Just as Amazon made the mom and pop store irrelevant, Where Walmart once reigned king, they too have not adapted well in the technology age. So begins yet another story of a troubled industry. The Big Cable and Satellite companies. While Comcast, AT&T(DirectTV division) and Time Warner are well aware of the drop in pay tv subscribers, judging by the way their CEOs are handling it makes one wonder if they really understand the true demise of their brand. In May of this year Space X launched the first 60 of its 12,000 low orbit internet satellites. Tests are proving to be successful and much faster, less latency than other satellites. Amazon is on a similar path with the same goals. Both of these companies have a track record for success and innovation. I’m starting to believe anything Elon Musk says is going to happen. So what does this have to do with Comcast you ask? Well Comcast has so far offset the cost of dwindling pay tv subscribers by increasing their internet prices. Since in most metropolitan areas, they are a monopoly, this isn’t a problem for anyone other than the ones paying for the higher price service. Now with competition in the for of low earth satellites becoming a reality in the very near future, There will be nothing left to save the big content providers. It would be one thing if they had a loyal fanbase, but industry experts show these companies to be the most disliked of all companies in their markets. People will be rooting for their failure. According to Wikipedia, In June 2019, SpaceX applied to the FAA for a license to test up to 270 ground terminals—70 nationwide across the United States and 200 in Washington State at SpaceX employee homes. This means going forward it looks as though the US market is in the sights for Space X. Without knowing the timeline of service launch, it’s hard to tell whether Comcast and AT&T can come up with a company saving plan. It looks doubtful from where I sit. Especially when you factor in the poor decision making by the persons in charge for these companies. If you own stock in this area, time to get out. May I suggest investing in Amazon or Space X. I’d love to hear your thought on this matter. Feel free to leave a comment below.