Devoted to show business and the entertainment industry

Phone and Internet operators are now moving over into TV as cable companies diversify into broadband and voice calls. A number of analysts feel that they are now positioned well to battle cable at its own game in its own arena.

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Lars Godell of Forrester Research says, "Telcos might have disadvantages in acquiring content and have to pay more for it, but overall, they have advantages on the network side."

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There is a phone company in Hong Kong called PCCW Ltd. which asserts that it has over half a million customers for their “Now TV, a service where they are empowered to pick-and-play. They offer 15 free channels and close to 80 a la carte. They have now almost 40 percent share of the Hong Kong pay-TV market and extends to one in four households.

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PCCW deliver their TV over the Internet, gaining ground on their cable and satellite rivals. Their major challenge is to break the resistance of the content providers and movie studios that are resistant to change; which has resulted in being limited in their competitive options to attract cable’s staunch customers.

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Those who have reportedly stayed with Hong Kong’s cable operator say that at this time “Now TV” doesn’t have the premium channels available to make them want to switch.

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Some consumers are getting creative by downsizing their cable packages and then picking up some of those dropped channels with the less expensive “Now TV” package.

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It is amazing to me to see this same error over and over again amongst entrepreneurs that should know better. Video on demand will come in fullness; consumers demand it. So to attempt to wiggle around it by holding back programming and using delaying tactics, will only give competitors willing to go the whole way the upper hand in what is the future of the TV industry.

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