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Cable Technology Feature Article

September 23, 2010

You're Cut Off, Cable

By Juliana Kenny, TMCnet Web Editor


 “Young people are pretty smart. They’re not going to pay for something they don’t need to.” Why, thank you, Ivan Seidenberg, CEO of Verizon (News - Alert).

He was referring to the next generation’s choices when it comes to cable TV services versus the ever-growing popular Internet video.

The most prevalent point-of-view among cable executives is that “cord cutting,” or consumers switching to Internet video from cable services, is not nearly as threatening to the cable industry as was thought. Clearly, they are just trying to make themselves feel better.

This is like that time when microwaves came out and everyone said, “There’s no way it’s going to replace the toaster oven.” And all the housewives said, “Yeah, right. Gimme one o’ those.” Hence, the TV dinner explosion.

I’m not saying the invention of the TV dinner wasn’t amazing, but frankly, let’s think about what eating plastic mashed potatoes, frozen meatloaf and watching TV do for you at the same time – nothing. And now we’ve got a nationwide obesity problem? The two could be related.


Anyway, to avoid any further obesity epidemics possibly resulting from the consumers’ choice of Internet video over cable TV, execs need to confront the impending cord cutting that will seriously affect businesses based on selling cable bundles. “If you remain static too long, the technology is going to nibble at you on the edges, and you have to be prepared for it,” noted Seidenberg.

He remarked that Verizon will not be seriously affected by the imminent changes in the cable network industry, but companies such as Comcast (News - Alert) will definitely feel the blow. He also vaguely hinted at Verizon’s pending accrual of the iPhone as he gently mentioned that he’d “very much like to offer Apple’s (News - Alert) handset.”

Lovely, we’d like you to too. Just make sure you get your cable buddies to watch their steps. We don’t want any more plastic mashed potatoes.


Juliana Kenny graduated from the University of Connecticut with a double degree in English and French. After managing a small company for two years, she joined TMC (News - Alert) as a Web Editor for TMCnet. Juliana currently focuses on the call center and CRM industries, but she also writes about cloud telephony and network gear including softswitches.

Edited by Juliana Kenny