Telco entry into video distribution will be a boon for content ow...
Telco entry into video distribution will be a boon for content owners, said Citigroup analysts Jason Bazinet and Mike Rollins. Phone companies lack the scale that cable operators have, so they will paying much more to programmers in carriage…
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fees, Bazinet said: “We believe telco video entry creates $3.8 billion in incremental value” annually the next 3 years, to be distributed unevenly among existing cable networks and operators. Disney will see the largest benefit, largely due to ESPN, said Bazinet. The analysts said they see telco entry into video as a way to protect the voice business from cable competition. “We haven’t seen anything to suggest that the incremental video profit is going to be significant. We think the telcos are looking at this as a way to protect what they have in voice,” said Rollins.