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US consumers go for OTT but broadband choice urged

In recent years, a lot of media and telecoms executives dismissed the idea that Americans would stop subscribing to cable and satellite TV services, an editorial in the New York Times notes. “But the cord-cutting phenomenon can no longer be ignored. American cable and satellite companies collectively lost more than 600,000 subscribers in the second quarter of this year, the biggest decline the industry has ever seen.” People are turning to OTT players such as Netflix and Amazon, “which are much cheaper than the traditional TV package offered by companies like Comcast and DirecTV”. However, “the big telecoms companies will still have plenty of leverage. Some analysts predict that as customers desert cable TV packages for internet-based services, the telecom giants like Charter and AT&T will simply charge more for internet access, wiping out some or all of the savings consumers had hoped for… That’s why it is important that Congress and the Federal Communications Commission push for more choices in the broadband market.” http://nyti.ms/1TXyX6U

  • Monday, 24 August 2015

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