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Why Amazon will Buy Comcast

Why Amazon will Buy Comcast

The con­cept of world dom­i­na­tion used to be rel­e­gat­ed to sci­ence fic­tion movies how­ev­er Ama­zon may yet become one of the first to make it a real­i­ty. Their recent addi­tion of the Stream­ing Part­ners pro­gram could be the start of Ama­zon as the world’s first glob­al OTT (over the top) pro­gram­ming provider. With 83.5% of Face­book users and 79% of Twit­ter users com­ing from out­side the US, com­pa­nies today must be glob­al­ly focused to tru­ly com­pete and grow.   Com­cast busi­ness is lim­it­ed to the US.  With cable sys­tems pass­ing about 44% of all US homes and 22 mil­lion sub­scribers it has a strong pres­ence but only in the US. Ama­zon is a glob­al com­pa­ny; Accord­ing to Mark Mahaney, ana­lyst at RBC Cap­i­tal Mar­kets, 37% of its 80 mil­lion Prime sub­scribers are from out­side the US and is grow­ing quick­ly. But Why Should Ama­zon buy Com­cast? Amazon’s for­ay into OTT is the pre­cur­sor to the sep­a­ra­tion of the pro­gram­ming plat­form from the wired cable.  I believe that some­time in the next 3 to 5 years most cable com­pa­nies will sell broad­band access only and the pro­gram offer­ings will be spun off into sep­a­rate com­pa­nies which will have lots of com­pe­ti­tion…

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Cable and Satellite Services are Dead, Long Live Video Streaming.

Cable and Satellite Services are Dead, Long Live Video Streaming.

Dur­ing a recent con­fer­ence Net­flix CEO Reed Hast­ings per­ceived that lin­ear TV (basi­cal­ly cable and satel­lite ser­vices) would start to decline in view­er­ship and that in the next two decades Inter­net TV would take over. Well the results as of late make his pre­dic­tions appear to be true. Net­flix (find jobs at Net­flix) shares have soared 70% this year as the video stream­ing leader has topped sub­scriber growth expec­ta­tions twice; it added near­ly 2.28 mil­lion domes­tic mem­bers in its most recent quar­ter, rep­re­sent­ing near­ly 20% growth from the pre­vi­ous year. People’s rela­tion­ship with tra­di­tion­al TV has grad­u­al­ly been chang­ing; mil­len­ni­als have been decreas­ing Lin­ear TV con­sump­tion, which dropped by 20% last year. Accord­ing to media research firm Mof­fett Nathanson, pay-TV sub­scrip­tions fell by 31,000 in the first quar­ter. The first set of data on pay-TV sub­scrip­tions for the year has come in, show­ing that the indus­try is declin­ing faster than thought. It’s a cord-cut­t­ing rev­o­lu­tion which appears to be accel­er­at­ing. Pay-TV sub­scrip­tions fell by 95,000 in 2013 and increased to 125,000 in 2014. About 150,000 pay-TV cus­tomers can­celed video ser­vice in the three months that end­ed June 30, accord­ing to esti­mates pub­lished on Fri­day by Leicht­man Research Group. It could be…

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