In conversations with individuals in and around the television industry, many assert that the cable bundle is now in its twilight years—still operational but certainly not thriving. Ironically, at least one cable executive remains optimistic about the future of this business. In an interview with CNBC’s Alex Sherman, Altice USA CEO Dennis Matthew expressed his belief that cable operators could serve as the gateway for consumers to access innovative television bundles that merge the best of linear television and streaming.
“We’re going to make it super simple where you can have linear content combined with streaming content, and the option to turn that streaming content on and off,” Matthew told CNBC. The vision involves consumers subscribing to a (likely skinnier) bundle of linear networks—similar to the options available for DirecTV and Comcast customers—while also selecting which streaming services to incorporate, facilitated by dynamic pricing that rewards larger bundles with greater discounts. Conversely, those opting for fewer choices would pay closer to an a la carte rate.
This logic resonates, especially considering that recent carriage agreements between cable distributors like Altice and content providers like Disney have emphasized the ability to bundle streaming services like Disney+ into cable packages. The potential for cable companies to collaborate with content providers to create more appealing offerings for consumers is not out of the question. However, the notion that cable companies can deliver a sustainable long-term solution is somewhat optimistic, perhaps overly so. While they possess the necessary technical infrastructure, they must contend with industry giants like Amazon, Apple, Google, and Disney to succeed.
These larger companies undoubtedly have the upper hand in developing an all-in-one service capable of replacing the traditional cable bundle. Disney has already shown interest in becoming the primary hub for all live sports, regardless of which network is broadcasting the game. Additionally, Google, which currently operates a cable alternative through YouTube TV, may be better positioned to bundle streaming services than various regional cable providers.
Even if cable companies manage to carve out a role in the evolving landscape of television consumption, significant challenges remain. As per Sherman, “There are still large hurdles that need to be cleared regarding revenue and data sharing and password efficiency. Ideally, cable companies want to be the point of contact for consumers, and it’s currently cumbersome for users to have different logins for each streaming service.” The silver lining is that there is a consensus: the existing model is inadequate. Content is overly fragmented, leaving consumers desiring a single-price solution to access everything. Historically, cable companies excelled at fulfilling this demand, but whether they can adapt to meet future needs remains uncertain.
