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Management World Americas 2009

Wednesday December 9 2009

Cable Operators Hedge Bets With Content

By Mark Everett Hall

Cable operators have come a long way from being mere aggregators of other companies’ content, offering more services to keep subscribers hooked. But with the impending acquisition of NBC by Comcast, more may move into owning their own content as another way to hold on to paying users.

That’s the view expressed by David Jacobs, CTO of Amdocs, at this week’s Management World Americas in Orlando.

According to Jacobs, cable operators like Comcast see owning their own content as a way of “hedging their bets” in a highly competitive market against incursions from other aggregators like satellite companies.

Comcast’s planned acquisition to provide its own content is not path breaking, Jacobs said, pointing to Time Warner with its vast content library and Liberty Media, which has its own content, such as Starz.

Jacobs could not say whether more cable operators will follow their lead, but he said they are seeking more ways to keep their customers happy.

He said, “It’s more important to delight your current customers, because it’s easier than attracting new ones.”

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