Holding onto the triple play: How costs, caps and contracts will keep ISPs flush

ISPs will be fine despite broadband video offer competing for triple play customers.


The broadband business is increasingly turning into the TV business.

Sure, we predicted this, and the Comcast and Time Warner Cable merger is predicated on this, but the dynamic between video and broadband is a great example of watching giant companies try to balance the costs of providing new services while still keeping the margins of the previous service. Call it a pivot of sorts, or changing the engines while a jet is flying, but ISPs have been making these transitions for years.

What’s happening is that as customers find more entertainment value in broadband — either because they are spending all night on Reddit or because they are streaming movies via Netflix or Apple’s iTunes — they are increasingly questioning the value of the cable package. And while these people may not be the dreaded cord cutters or cord nevers, they may attempt to cut the costs…

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