TREotM: The 2nd Decade of the 21st Century

This is a book in progress Go here to read it from the beginningAs we ended last December of 2009 the biggest merger bust in history busted up amp8230 yes AOL Time Warner jettisoned AOL amp8220Youamp8217ve got mail amp8230 and lessamp8221amp160 Time Warner under Jeffrey Bewkes returned to its production roots this time with Turner Broadcastingamp8217s networks including CNN TBS and TNTThe second decade dawned with 989 penetration by TVHH in the USamp160 Some 115990 million of the 117220000HH had at least one television set amp8230 829 had more than one set and 619 had a VCR andor a DVD player or subscribed to a DVR providerAt the end of the 3rd Quarter in 2010 934 million TVHH subscribed to the nationamp8217s top 14 pay TV providersamp160 The ten MSOs in the top group had 58 of themamp160 Satellite DBS providers accounted for 38 while newlyoverbuilding telco providers claimed 6amp160 Analog was slipping digital was growingamp160 Most of all MSOs were beginning to accelerate their emphasis on broadband provisionsamp160 Yearoveryear though telco providers were solidly growing as they expanded their territories servedamp160 Note Unlike cable provider franchises that required the entire city town or county limits to be served telco franchise rules allowed cherrypicking prosperous neighborhoods or put another not so nice way redliningamp160amp160amp160amp160amp160This week weamp8217ll look at the changes in the distribution or conduit side Next week weamp8217ll look at programming and other mediaThe top video providers in 2010 were Source CTAM Pulse amp169MediaCensusVideo Provideramp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 SubscribersComcastamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 22939000DIRECTVamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 18934000DISHamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 14289000Time Warner Cableamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 12551000Cox Cableamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 4968257Charteramp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 4652700Cablevisionamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 3043000Verizon FiOSamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 3290000Bright Houseamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 2194397ATampampT Uverseamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 2739000Mediacomamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 1203000Suddenlinkamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 1228300Insightamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160amp160amp160amp160 698700Cable Oneamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160amp160amp160amp160 650902Top MVPDsamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160amp160amp160amp160 amp160amp160amp160amp160amp160amp160amp160amp16093381256 DBS once known as amp8220donamp8217t be sillyamp8221 became amp8220done be smartamp8221 with digital compressionamp160Though the deal Comcast made to buy 51 of NBC from GE had been announced in 2009 it wasnamp8217t until January of 2011 that it was completedamp160 Just a couple of years later Comcast acquired the rest of the companyamp160 NBC is now a whollyowned subsidiary of Comcastamp160 The move by a distributor to acquire a broadcaster cablecaster and owner of studios was exactly the opposite move that AOL Time Warner had taken as it spun off both its cable operations and its internet activities in AOLAs the decade advanced it got hard to tell just who was in which business doing whatamp160 In other words the methods of distribution were in fluxamp160 About midway through the decade for example Comcast was the largest cable operator the largest provider of WiFi hotspots the 6th largest provider of telephony Voice over Internet Protocol amp8211 VoIP in this case and the largest provider of broadband accessAdditionally size of the company got ever more importantThe man and company that sold TCI to the original ATampampT had turned their attention to international efforts growing to be Europeamp8217s largest cable operatoramp160 Sensing an opportunity in the US again Liberty Globalamp8217s Dr John Malone made a significant investment in Charter and installed recent Cablevision CEO Tom Rutledge at the top of that companyamp160 Not long afterward Charter made a bid to acquire the much larger Time Warner Cableamp160 In order to achieve regulatory authority Charter initiated conversations with Comcast to sell some of the potential acquired systems to it amp8230 but Comcast decided it wanted the whole enchiladaamp160 But after a very long and expensive lobbying effort both the Justice Department and the Federal Communications Commission expressed reservations about one company controlling so much of Americaamp8217s broadband access and Comcast reluctantly withdrewThat gave Charter another chance amp8230 this time it made another friendly offer and amp160is now facing the same regulatory scrutiny as it attempts to grow significantly combining its subscribers with both Time Warner Cableamp8217s and the smaller Bright Houseamp8217s subsMeanwhile DISH had long hoped to add cellular to its satellite offerings but even a relentless acquisition of spectrum left watching from the sidelines as ATampampT with 1166 million mobile subscribers and some 58 million videoFTTC fiber to the curb subscribers made the nascent dream come true via the purchase of DIRECTamp8217s 203 million video subscribers in mid2015amp160 That gave ATampampT access to every household in the US by two delivery systems satellite and cellularHereamp8217s how the top five providers in millions ranked by middecade SNL KaganTV Provideramp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 Subsamp160amp160amp160 Telco Provideramp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 Subsamp160amp160amp160 Broadband Provider SubsATampampTDIRECTVamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 261amp160amp160amp160amp160 Verizon Wirelessamp160amp160amp160amp160amp160amp160amp160amp160 1200amp160amp160 Comcastamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 212Comcastamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 225amp160amp160amp160amp160 ATampampT Wirelessamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 1166amp160amp160 ATampampTamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 164DISHamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 140amp160amp160amp160amp160 Sprintamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 548amp160amp160 Time Warner Cableamp160amp160amp160 120Time Warner Cableamp160amp160amp160 112amp160amp160amp160amp160 TMobileamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 450amp160amp160 Verizonamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 90Verizon FiOSamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 58amp160amp160amp160amp160 ATampampT Wiredamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp160 153amp160amp160 CenturyLinkamp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160amp160 amp16060amp160Of note Comcast is the 7 telco provider with 11 million VoiceoverInternetProtocol VoIP landline subscribersamp160 Should Charter succeed in its acquisitions it would become the 3rd largest TV provider out of the top 10 in telco but 2 in broadband with 178 million subsNext week Chapter 12 Part 2 amp8211 The Content Side of the BusinessThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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