Content is proving to be king to many Wireless & Cable providers. As an employee working my 18th year at AT&T I wash shocked and many around me to see out company no longer go after wireless and wire line assets, but rather shift position and go after one of the largest content providers in the world. Time Warner has full assets to HBO, CNN, Harry Potter, and many more titles. Content will be positioned for the first time with over the top TV to any device any time and any where on the US and Mexico. AT&T owns Direct TV and has access over most of Central and South America.
As revenues continue to shrink with Cable and Wireless providers for existing services such as voice, SMS and data, new avenues for revenue need to be created. Video & content will lead the new path towards new ancillary services. With software and automation driving operations cost down new margin will be established with a on demand network and content.
AT&T is adjusting to the convectional means of TV moving from the living room to be viewed anywhere and anytime in the world that most of us. The conventional cable services are losing ground to the like of Netflix and over the top video and content provider’s. AT&T and many other cable providers are on the opposite end of content, and that is why the new era of mega mergers between the cable/network providers look for their perfect match on the content side.
We will most likely see the likes of Netflix and other content providers stock such as Walt Disney rally as content is king.
What does this mean from an advertising perspective. Direct marketing will increase, and conventional marketing through conventional commercials will slow as the broad audience begins to narrow and direct commercials will increase.