Comcast announced an offer worth $65
billion for the bulk of 21st Century Fox’s businesses on Wednesday,
setting up a showdown with the Walt Disney Company for Rupert Murdoch’s
media empire. The all-cash bid by Comcast, the largest cable company in the United States, came a day after a federal judge approved a merger
between AT&T and Time Warner. Comcast executives had awaited the
decision in that case before mounting their bid for 21st Century Fox.
What does this prove? Content without a customer is worthless. A customer with no content is equally worthless. Distribution gives customers access. But customers are fickle and want all sorts of stuff. Also customers are getting rather sick of paying for stuff they do now want or outright despise, like ESPN for some customers. Thus this is a tricky move.
The customer does not want bundles any longer, the know the CATV scams all too well. Average CATV rates have doubled in eight years. Nothing changed, just the price. The cable converter is priced at about $15 per month per converter and it is a relic. There is no option even though the FCC allows it. Then again we ask; what FCC, at least under current management.
The game here between Comcast and AT&T is interesting. AT&T has the better connection via 5G, if and only if they understand what they have. Somehow they seem clueless. Cable is a dying technology. Also Cable is hated by its customer base and it seems Comcast is at the top of this list.
Then again there is Verizon, same 5G asset, but their brain trust bought AoL and Yahoo, two apparent boat anchors. Thus the game is between Comcast and old technology and AT&T and a winning technology is they can understand what they have.
This will be an interesting play.
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