Tuesday, May 13, 2014

Cable Distribution Becoming A Chess Game

The result of the potential Comcast and Time Warner Cable merger has led to the cable industry becoming a chess board for strategic moves to level the playing field.  AT&T has decided to extend its reach through acquisition and has targeted DirecTv as the means to expand its footprint domestically as well as internationally.  This combined entity would nearly match the size of a larger Comcast.  And for DirecTv, provide them with an important component, namely an integrated broadband and communication arm to support its video business.  How will the FCC react and will it make a decision to enable Comcast to move forward with Time Warner Cable an easier one to approve.  I think so.  But I also wonder what the next piece will be that moves on the chess board.  Is it time for Charter to also make a play for Cablevision or Cox to expand its footprint beyond what Comcast would sell to them.  The board is in play and I suspect more moves are coming.