How The New AT&T Could Bully Its Way To Streaming Domination
December 19, 2018
After decades of soaring cable TV prices, the streaming revolution has finally arrived. Netflix, YouTube, Hulu, and Amazon are all fully stocked services, entirely capable of competing with cable on content, and they’re all rated far higher in customer satisfaction than the companies they hope to supplant.
The result is new competition for cable companies that are pushing them into the streaming business. Nearly every broadcaster that’s currently in the cable TV lineup will offer some kind of direct-to-consumer streaming service by 2022. Most notable will be Disney’s looming Disney+ service, which will soon be the exclusive streaming home of must-have content from Pixar, Marvel, and the Star Wars universe. AT&T plans to launch its own streaming service next year, drawing on content from DC Comics and Harry Potter that was acquired as part of the recent Time Warner deal.
But telecom companies have a unique advantage: they control the content and the networks that content travels over, presenting a wonderful opportunity to hamstring competitors and unfairly advantage their own services. Heavy-handed tactics like throttling and usage caps would have been blocked by the 2015 net neutrality rules. But the rules were rolled back by Trump Federal Communications Commission chairman Ajit Pai, and those networks could be a crucial advantage in the streaming wars.
Read more at The Verge