Comcast + NBC In / Time Warner + AOL out, why?


comcast_nbcWe all have seen what has happened last weeks with this two market movements. Why one mega-company is trying to incorporate into their distribution channel business content and the other one in the content business gave away a distribution channel?

The answer is kind off simple and it has to do with their different objectives. The companies themselves are completely different. While Time Warner is trying to consolidate their activities as pure content creators (some time ago they also let their cable business go) and separate type of business that have different objectives for different type of investors, Comcast is afraid of being left out of the content stream world in a high competitive industry which is today cable providers. aol_time

Content consumers are slowly switching from cable/internet providers to just access content through the internet. Comcast saw this potential danger and though they don’t have experience at all in studios and broadcasting, they took the step.

On the other hand and identifying the same issue, Time Warner decided that controlling distribution channels is not in their best interests. Actually, just like Comcast, they believe that content consumers are switching to the internet. Furthermore, they are so convinced that they are lunching their own internet distribution site “TV Everywhere” as joint venture with… guess who… Comcast! Actually this project reflects the believe of both companies that users will pay for content online.

Are they right or wrong? My opinion is that they are both making the right decision. How can two mega-corporations be wrong at the same time? Only time will tell but at least when it comes to me, this is the way I see myself consuming TV and film content over the next 10 years.

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