As subscription video-on-demand services have gained enormous up-take with consumers, traditional cable companies feel threatened enough to launch their own takes on the online bundle.<\/p>\n

But what if, for a cable provider, video wasn’t the thing worth paying for at all?<\/p>\n

What if market evolution suggests MVPDs should open their platforms to the new competition, and make higher margin from a new focus on broadband infrastructure?<\/p>\n

In this video interview with Beet.TV, Darren Glatt, Searchlight Capital Partners partner, discusses the changing emphasis for the traditional cable company.<\/p>\n

“These companies will have to think very deliberately on how they transition their video models,” says Glatt, whose firm last year made a $225 milion investment<\/a> in ad-tech firm MediaMath, bringing the tech company’s total amount raised up to $607.5 million, according to Crunchbase<\/a>.<\/p>\n

“They are fine with their video product lagging, in favor of OTT and IP TV platforms, because the more devices the consumer has in his or her home, the higher-bandwidth speed they will require to maintain functionality<\/p>\n

“If you think about 10, 12 devices … all of that requires high-speed internet broadband. Which is, ultimately, a very high-margin product for the cable providers.”<\/p>\n

Can cable companies make that kind of transition? Historically, they have preferred to gatekeepers to video content.<\/p>\n

Increasingly, however, they are adopting a two-pronged approach – not only opening up their own online TV bundles, but often even carrying rivals’.<\/p>\n

“What I think you’ll see, is over the next few years, the cable providers begin to embrace more of IPTV,” Glatt bets.<\/p>\n

“Five years ago, they were very reluctant around platforms like Netflix, Hulu, YouTube.<\/p>\n

“But, the more applications run through their gateway, through their platform, the more the customer will consume broadband, which is a much more profitable product for them.”<\/p>\n

This video was recorded at the MediaMath Connect All Fronts industry conference in Manhattan. The series is sponsored by MediaMath. For more videos\u00a0please visit this page<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

As subscription video-on-demand services have gained enormous up-take with consumers, traditional cable companies feel threatened enough to launch their own takes on the online bundle. But what if, for a cable provider, video wasn’t the thing worth paying for at all? What if market evolution suggests MVPDs should open their platforms to the new competition, […]<\/p>\n","protected":false},"author":15,"featured_media":59879,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[]},"categories":[7915],"tags":[7925,7926],"_links":{"self":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/59872"}],"collection":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/comments?post=59872"}],"version-history":[{"count":0,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/59872\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media\/59879"}],"wp:attachment":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media?parent=59872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/categories?post=59872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/tags?post=59872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}