THE CHANGING LANDSCAPE OF CABLE/TELECOM
“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.” – Bill Gates
As a 23 year funder of the cable and telecom industry, Paragon Financial closely monitors changes within the industry. This allows us to proactively help cable/telecom vendors, suppliers and contractors succeed. We all are watching as talks continue of Charter Communications acquiring Cox Communications, the impact of Charter acquiring Time Warner Cable Inc. and Bright House Networks LLC, and Altice NV acquiring Cablevision and Suddenlink. There are other players to watch such as Google Fiber, Apple TV, and Netflix. Even with the slow roll-out of Google Fiber, they are still poised to further shake up the industry which cannot be ignored.
“We don’t think Google Fiber is an experiment, a regulatory ploy, or just a bluff to keep incumbents in check or get them to upgrade their networks. We believe the potential to build a large, profitable business is one of the main motivations for Google.” says Bernstein Research analysts Carlos Kirjner and Peter Paskhaver.
From a content standpoint, Netflix has grown from being a movie provider to a television company with Emmy winning programming. The release of all the episodes simultaneously around the world is a hugely disruptive strategy, one that has already altered consumer expectations. And the splash at the Emmys let talent, audiences and rivals know how serious they are with future plans.
Apple TV continues its rise in popularity with over 37 million sold according to Strategy Analytics. Using Apple TV sales as a proxy for the market (which includes Chromecast, Roku, AmazonFireTV, etc.), the data is telling us that the trend away from traditional TV is accelerating rapidly. According to a recent WSJ article, the next generation Apple TV is a true set-top replacement capable of streaming live TV channels, recording TV a la TiVo, accessing internet programming, streaming on-demand shows/movies and serving as the content aggregator. Consumers will receive all of this in a beautiful user interface with their credit card pre-loaded, making consumption frictionless.
The future of the industry is happening right now and we are here to help. For 23 years the cable/ telecom industry has been coming to Paragon Financial for working capital solutions and credit protection. We understand your situation and will help you navigate through these uncertain, but growing times.