what is happening in the cable industry. DISRUPTION by new entrants. It started with Amazon (and e-commerce) in
retail and Netflix (and other streaming services) in home entertainment.
In the 1980s/90s, retailers like Macys and JCPenney
built-out their footprints at mall locations across the country. At those locations, they largely sold the brands
of unaffiliated merchandisers. Consumers spent a lot of time at the mall to
shop. All was good in the retail space.
In the MVPD industry in the 1980s/90s, cable firms provided access
to content owned by third-parties. If
consumers wanted to watch a live-sporting event, their favorite show, the
nightly news, they turned on the television.
There were 90+ million MVPD households.
All was good in the TV business.
All was good because, in each industry, the relationship between
the owners of “the box” and the owners of “the stuff” made available through
the box was one of mutual dependency. If
you built it, “they” would come. But, there
was a change, a technological one, which shifted the preferences on how
consumers shopped and watched programming.
In response, MVPD providers are consolidating, creating their
own content, and providing different packaging options for consumers (e.g.
skinny bundles and online access).
Retailers are merging and closing locations, creating their own
merchandise, and expanding their online presence.
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