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[ NNSquad ] Hey Cable Guys! Cord Cutting is real, and It's a Problem Says Verizon CEO

I posted a comment “This is why Comcast is buying NBCU and others are shifting their business model to using the network rather than owning the network. How much of Verizon's revenue depend on owning the network?”


Seidenberg seems to be playing this as an advantage for Verizon when it’s just the opposite. What good does it to do own a network when the added value comes from using the network not owning it. How can network owners make money by selling “bits” when there is no differentiation between the bit pipes and the limitations of the pipe model put them at a disadvantage?


Is Verizon’s FiOS now a liability?


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The party line from cable executives is that the “cord-cutting” phenomenon — consumers swapping cable subscriptions for Internet video — is a myth. Or at best greatly exaggerated. Not so, says Verizon CEO Ivan Seidenberg


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Seidenberg’s argument is that over the top is a much bigger deal for cable guys like Comcast (CMCSA), who have an entire business built around the bundle, than it will be for his company, which is a relative newcomer to video. Theoretically, he’ll be be able to replace some video subscribers with subs who paying for robust broadband connections. But like it or not, it’s going to happen, he says.