The proposed merger between Comcast and Time Warner Cable made waves in the business community. If the deal is approved, most customers will not likely see an immediate difference in their television channels and Internet service. However, the deal will have several long term entertainment ramifications. Below, we take a look at six of the possible ways that the Comcast Time Warner Cable merger will change the way we are entertained.
If Comcast’s purchase of Time Warner Cable goes through; Time Warner customers will be offered Comcast’s channels and services. This is excellent news for Time Warner customers as Comcast has a broad variety of channels. Comcast customers will testify that the company’s hardware and software is advanced.
More Streaming and On-Demand Options
Comcast offers 50,000 on-demand video selections on television, as well as 300,000 streaming choices through Xfinity TV. Xfinity TV mobile apps also provide 35 live streaming choices. Comcast customers are also able to download content they can watch later when they are offline. Time Warner Cable customers stand to benefit from these advanced technologies including Comcast’s recently launched cloud DVR called X1. Benefits like these should help you choose the right TV service for you or your family or both.
Even if the acquisition results in slightly higher fees compared to what current Time Warner Cable customers are paying right now, it could be argued the extra services make it worthwhile. The acquisition will make Comcast the largest provider of broadband content in the U.S.
Although networks like CBS, NBC and ABC receive billions of dollars from television distributors, the pendulum may begin swinging the other way. CBS actually went dark on Time Warner Cable for 32 days last year. The disagreements between networks and cable providers over finances are likely to become less common as Comcast gains an even larger share of the market. The result will be fewer blackout threats, fewer actual blackouts and more re-transmissions from popular networks.
More Home Movie Sales
Comcast has recently teamed with Hollywood movie and television studios to sell content directly to the public at home by way of Electronic Sell-Throughs (ESTs). This business will likely increase as well as improve if the two corporations are allowed to merge. It means we’ll see less DVDs and more sales of movies and television shows directly to cable subscribers.
Comcast has an advantage over Amazon and Netflix as its bandwidth technology is superior, allowing faster and more accurate video to be sent to customers. John Feltheimer, CEO of Lionsgate studio, says, “In the first two months of their service, relying only on the content of three studios, including Lionsgate, Comcast has captured 15% of the EST market and expanded the business.”
Virtual Pay TV: More Through The Internet
Comcast will likely attempt to compete with Sony and Verizon’s plans to offer “pay TV” channels through the Internet. Yet Comcast pays much less for television content so it will be able to offer TV channels by way of the Internet at a much lower rate than any of its competitors. As a result of the acquisition of Time Warner Cable, Comcast will be able to offer more “pay TV” channels to an even larger group of customers. This new style of content is typically called “Virtual Pay TV.”
Migration From Netflix To Comcast
Comcast’s buyout of Time Warner Cable will give them a foothold in 43 of the largest 50 markets in the U.S. Combine this magnitude of an audience with the company’s superior bandwidth technology and the result will be an unstoppable combination of streaming and on-demand video content. This will function as a severe blow to Netflix which typically operates through slower Internet bandwidth that connects to computers and mobile devices. Studios may well flock to Comcast’s superior bandwidth and gigantic customer base.