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The Cable Show

A few weeks ago, I attended the 2012 Cable Show – the cable television industry’s big trade show – in Boston to get a “on the ground floor” view of how the leading content owners and cable television/cable technology providers saw the future of video delivery, and thought I’d share some pictures and impressions

  • While there is a significant piece of the show that is like a typical technology conference (mainly cable infrastructure/set top box technology vendors like Motorola, Elemental, Azuki, etc showing off their latest and greatest), by far the biggest booths are SXSW-style attempt (flashy booths, gimmicks) by the content owners (NBC, Disney, etc) to get people to notice them. Almost every major content provider booth had a full bar inside, there were lots of gimmicks (see some of the pictures below — Fox and NBC trotted out some of their celebrities, many booths had photo booth games to show off their latest shows – like A&E with its show Duck Dynasty, Turner invited a lollipop maker to create lollipops in the shape of some of their cartoon characters, etc), and a there were a number of networks who used “booth babes” to try to draw more traffic. I guess when your business is dependent on looking sexy & popular for advertisers/cable companies, it should be expected that they would do so during conferences as well.
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  • The relationship between content owners and cable companies that has built the profits in the industry is being tested by the rise of internet video. Until recently, I had always been confused as to why Hulu and Netflix seemed so restrictive in terms of content availability. It was only upon understanding just how profitable the existing arrangement between the cable/satellite providers (who are the only ones who can sell access to ESPN, HBO, CNN, etc) and the content owners (who can charge the cable/satellite providers for each subscriber, even those who don’t watch their particular networks) that I began to understand why you can’t get ESPN or HBO online (unless you have a cable/satellite subscription) — much to the detriment of the consumer. Thankfully, I saw some promising signs:
    • At the Cable Show, every content provider and cable provider was talking about “TV Everywhere”. Nearly every single booth touted some sort of new, more flexible way to deliver content over the internet and to new devices like tablets and phones. Granted, they were still operating within the existing sandbox (you can’t watch it without a cable subscription), but the increasing competitive overlap between the cable TV-over-internet services (like Xfinity TV online) and the content providers’-over-internet services (like HBO GO), I feel, will come to a breaking point as
      • Networks like HBO realize they could get a ton of standalone users and make a ton of standalone money by going direct to consumers
      • Smaller networks  increasingly feel squeezed as cable companies give a bigger and bigger cut of total content dollars to networks like HBO and Disney/ESPN/ABC, and resort to going direct to consumers.
    • New “TV networks” are getting real traction. One of the most real threats, from my perspective, to the cable-content owner dynamic is the rise of new content networks like Revision3, Blip.TV, College Humor, and YouTube’s new $200M initiative to build original high-quality “shows”. Why? Because it shows that you don’t need to use cable/satellite or to be a major content owner to get massive distribution. Its why Discovery Networks (owners of the Discovery Channel and TLC) bought Revision3. Its why Hulu, Netflix, and Amazon are funding their own content. After all, Hulu has quite a few made-for-Hulu programs (including Spy which I intend to watch as its tangentially related to MI-5 :-)). Netflix has not only created some interesting new shows, they’ve even decided to resurrect the canceled TV series Arrested Development (canceled by who? that’s right, the evil cancelers of Firefly — Fox). And its why Amazon just announced its first four original studio projects. Are these going to give HBO’s Game of Thrones a run for its money? Probably not anytime soon — but traction is traction, and the better off these alternatives do, the more likely the existing content/distributors are forced to adapt to the times.

I think this industry is ripe for change — and while it’ll probably come slower than it should, there’s no doubt that we’re going to see massive changes to how the traditional TV industry works.

Published in Blog

2 Comments

  1. Ryan Boyko Ryan Boyko

    As someone who wants to pay the absolute minimum to randomly watch just a few shows and movies a month (maybe 4-5 hours a month), and doesn’t particularly follow or care about any one show or movie too much, I actually pretty much like what Netflix is offering me now. It sounds like the changes are positive, but I’m just worried they’re going to find a way to make me pay more to watch _anything_ online.

  2. Ben Ben

    Haha, companies will find ways to extract money from you…

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