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Created 6/14/2008

Broadband Library: Two Sides to Every Story: Fall 2007 (September)

Broadband Library is distributed quarterly to all members of the Society of Cable Telecommunications Engineers (SCTE). Beginning in early 2007, our column "Two Sides to Every Story" has used opposing pages to present contrasting viewpoints on a cable/telecom industry topic.

Our column in the Fall 2007 Issue debates whether networked PC video has become a major threat to MSOs.

In "Networked PC Video Is a Big Threat to MSOs," Dave says "the elements are now falling into place for the PC to play a major role in home video. Over time this threatens to reduce MSOs’ revenue from cable video entertainment and increase their costs for high-speed Internet services. . . . MSOs are likely to lose subscription video revenue to these new video entrants. . . . [L]arge numbers of users connected to streaming video will require large investments in channel capacity and Internet infrastructure without generating new revenue."

In "Deeply Ingrained Habits Don't Change Overnight," Sandy disagrees: "[V]ideo to and through the PC won’t be a major threat to MSO’s video business any time soon. Consumers desire video quality, simplicity and ease of use. Their deeply-ingrained habits don’t change overnight." She said "MSOs have time to watch and understand what’s happening in the market. . . . [J]ust because something is technically possible . . . doesn’t mean that everyone will be doing it next week."

Next: Our column in the Summer 2007 issue debates whether or not cable operators should participate in the metro Wi-Fi market