Home
Articles
Photos
Interviews
Forums
New posts
Search forums
Georgia Tech Recruiting
Dashboard
What's new
New posts
New profile posts
Latest activity
Chat
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Georgia Tech Athletics
Georgia Tech Football
Conference Realignment
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="slugboy" data-source="post: 883546" data-attributes="member: 282"><p>As a subscriber, cable companies bill the heck out of you. As their customer, it sure looks like cable companies make a ton of money.</p><p>As an investor, cable companies aren't money machines. They have a lot of labor costs, they have upstream expenses, they have to upgrade their plant and equipment all the time just to keep up. The reason why Comcast and ATT bought NBC and Time Warner is because they wanted the content for profitability. They wanted to take the cash from their subscriber bases and use that to move into more profitable services. </p><p>If you read books like Christensen's "The Innovators Dilemma", Microsoft made a ton of money on high-profit software while Seagate scraped by on much tighter margins making disk drives. You needed both for your PC to work, but Microsoft was in the position where they got the lion's share of the profits from PCs, Dell and HP made less, Seagate had even thinner margins, and the poor company making power supplies was just selling a commodity. </p><p></p><p>Fifteen years ago, Comcast was in the Seagate portion of the Cable TV market, while ESPN and Disney were in the Microsoft part of that market. Comcast made a long-term plan to move into the profitable ESPN and Disney "Content" part of the marketplace. Then Netflix disrupted everything. </p><p></p><p>Comcast and ATT wanted to move to the part of the market that got the fat, juicy profits. That hasn't worked out. They moved into the market, paid a premium to do it, and the profits went out of it. They also weren't good at it. The market shifted too--I can't even tell you what the prime time Thursday lineup is on NBC. I can tell you shows that Netflix or Disney will have three months from now. Disney was good at it, and they're moving to the streaming model. </p><p></p><p>Cable providers are going after cellphones and devices and general internet now. Comcast does have Peacock and NBC Sports, but they're struggling to figure out what to do. </p><p></p><p>They don't know what content people are going to want to watch 10 years from now, or where they'll want it, but they're pretty sure they'll want internet in their homes.</p></blockquote><p></p>
[QUOTE="slugboy, post: 883546, member: 282"] As a subscriber, cable companies bill the heck out of you. As their customer, it sure looks like cable companies make a ton of money. As an investor, cable companies aren't money machines. They have a lot of labor costs, they have upstream expenses, they have to upgrade their plant and equipment all the time just to keep up. The reason why Comcast and ATT bought NBC and Time Warner is because they wanted the content for profitability. They wanted to take the cash from their subscriber bases and use that to move into more profitable services. If you read books like Christensen's "The Innovators Dilemma", Microsoft made a ton of money on high-profit software while Seagate scraped by on much tighter margins making disk drives. You needed both for your PC to work, but Microsoft was in the position where they got the lion's share of the profits from PCs, Dell and HP made less, Seagate had even thinner margins, and the poor company making power supplies was just selling a commodity. Fifteen years ago, Comcast was in the Seagate portion of the Cable TV market, while ESPN and Disney were in the Microsoft part of that market. Comcast made a long-term plan to move into the profitable ESPN and Disney "Content" part of the marketplace. Then Netflix disrupted everything. Comcast and ATT wanted to move to the part of the market that got the fat, juicy profits. That hasn't worked out. They moved into the market, paid a premium to do it, and the profits went out of it. They also weren't good at it. The market shifted too--I can't even tell you what the prime time Thursday lineup is on NBC. I can tell you shows that Netflix or Disney will have three months from now. Disney was good at it, and they're moving to the streaming model. Cable providers are going after cellphones and devices and general internet now. Comcast does have Peacock and NBC Sports, but they're struggling to figure out what to do. They don't know what content people are going to want to watch 10 years from now, or where they'll want it, but they're pretty sure they'll want internet in their homes. [/QUOTE]
Insert quotes…
Verification
What is the last name of the current Head Football Coach?
Post reply
Home
Forums
Georgia Tech Athletics
Georgia Tech Football
Conference Realignment
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top