Welcome!

Blog Feed Post

The “New” Media Landscape: CNBCUTWC, 21stCFTW, ATTDirecTV, T-Sprint

Over the next 18 months, proposed and pending mergers and acquisitions are going to completely change the media landscape. Even if only a few of them are completed, the impact will be felt across the value chain, Hollywood will be shaken to its core and we will live in a very different world. Here are just a few deals that, when taken together, should make you stop and think very hard.

Comcast/NBCU/TWC

CNBCUTWC

Almost everyone who has standing to have an opinion about the Comcast/NBCU takeover of Time Warner Cable tells me that it will breeze through regulatory and is all but a done deal. I’m not sure anything breezes through regulatory, but I am sure that the deal will get done. If true, the stage will be set for the most transformative media ownership changes in history.

The new Comcast/NBCU/TWC will own the majority of cable viewers in the US. Inside of five to seven years, the distribution of content through Comcast’s X1 platform will literally change everything we understand about video distribution. Analog television may be history, but the X1 is truly the next evolutionary step – it digitally distributes content to any device you own. And most of the cable TV households in America will happily pay for it monthly in cash as well as with their data. (Somewhere, George Orwell is smiling.)

Newscorp/Time Warner

21stCFTW

I have $20 in the office pool and chose $105 per share as the number that gets Fox/Time Warner done. My side bet is that CNN goes for about $10 Billion to Al Jazeera in the deal. (Could anyone else pay more?) This deal really makes sense. 21CF and WB studios combined, the two cable groups combined, all the burdensome assets sold off for parts. At this size, the combined organization may actually be able to compete with the pure play digital media companies sucking dollars out of the television marketplace. $105 per share is big money when compared to the $85 Fox has actually offered. Will it happen? I say yes, but the final share price is anyone’s guess. What about regulatory headwinds? After Comcast/NBCU/TWC goes through, how will regulators argue against Newscorp needing scale to compete?

AT&T/DirecTV

ATTDirecTV

This one’s a head-scratcher. According to the FAQ on DirecTV’s website, “This combination brings together two leading companies with complementary strengths and scale in mobility, video and broadband services. Together, DIRECTV and AT&T will be well-positioned to realize substantial incremental growth by offering consumers competitive and innovative broadband, video and mobile services. The combined company will cover 70 million customer locations with its broadband expansion and be a stronger alternative to cable with a better customer experience. Together, we will be well-positioned to meet the evolving video and broadband needs of the 21st century marketplace.”

The consumer offering is compelling, but from a media perspective, this group of 70 million customers has no geographic concentration. So, while there is good ad targeting software in place, it is not going to efficiently compete for local or regional advertising. Nor will it offer an efficient buy on a national scale – the 70 million TVHH are scattered. That said, the merger is practically a done deal and the combination of AT&T and DirecTV creates technological powerhouse with a well-differentiated consumer value proposition.

T-Mobile/Sprint

T-Sprint

Assuming all of the other mergers get approved, one can assume that the T-Mobile/Sprint merger will also be approved. Why wouldn’t it be? This will create a truly formidable competitor for Verizon and AT&T. In practice, this will be great for consumers – regardless of what the anti-trust people would have you believe — three good choices are better than two good choices and two low-cost, low-value, bad-network, also-ran choices.

But T-Mobile is killing it these days; look at what it has accomplished in the last quarter! While it’s true that T-Mobile announced a series of milestones highlighting why it is the fastest growing wireless company in America, as a part of its Q2 2014 earnings report. And it announced it has launched nationwide Voice Over LTE (VoLTE) with more than 2.8 million VoLTE-capable devices. And has begun equipping sites with 700 MHz gear and field-testing its first 700 MHz-compatible devices… but it will still be much better and much more competitive when it is combined with Sprint.

Guessing At The Future

Let’s play pretend. Assuming that all of this transpires. We can guess that Viacom will be broken up and sold for parts. The cable networks (MTV Networks and BET) will go to the highest bidder, as will Paramount (which was bolted on anyway).

So, what might the media landscape look like in 2016? That might be the wrong question to ask. The better question might be: Which companies will be best positioned to sell media in a world where more primetime content is viewed online than on broadcast and digital media companies, specifically Google, Facebook and Twitter, are converting TV ad dollars to data-driven ad dollars at an alarming rate?

Who has a clear path to the future? Who has the best data gathering? Who can make their first party data actionable? Who has the best distribution platform? Who, to use a very overused metaphor, is skating to where the puck will be?

I have well-reasoned answers to these questions and a few more; shoot me an email and we can handicap the new world order. It’s the best guessing game in town!

Read the original blog entry...

More Stories By Shelly Palmer

Shelly Palmer is the host of Fox Television’s "Shelly Palmer Digital Living" television show about living and working in a digital world. He is Fox 5′s (WNYW-TV New York) Tech Expert and the host of United Stations Radio Network’s, MediaBytes, a daily syndicated radio report that features insightful commentary and a unique insiders take on the biggest stories in technology, media, and entertainment.

Latest Stories
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...