Friday, January 18, 2008

Why Sprint should become a cable provider

Man oh man... The carriers are going crazy. Less than a week after it becomes possible to download movies off of iTunes, Time Warner drops this bombshell explaining that they are going to be charging for bandwidth usage. I'm sure this will add a lot to their bottom line... which it should... considering all of the people who will be flocking away from their service.

Here's what I found profoundly interesting: This is the same Time Warner aggressively marketing their triple play option just like every other annoying code caddy. So in other words... you'll be paying Time Warner for Cable, Internet, Phone and the right to actually use your internet connection and internet phone. Got it? Sure.. they say they're happy to put everything on one bill... problem is... it's going to be a really big bill. Heck.. it might even rival this bill.

So Sprint... here is my suggestion to you: Once Xohm is rolled out...redefine the triple-play.

I am saying scrap the land-line package all together. There's a whole generation of us who haven't had a land-line in years, and really don't have any intention of going back to one. Make the triple-play about mobility. Internet, Streaming Video (more on this in a minute) and Cell phone.... built into one bill.

Now: Streaming video. This is a bit out there, but it has effects in a lot of verticals, so bear with me. I think Sprint should negotiate with the networks in order to be the first provider of a la carte cable, all streamed via the net (sidenote here: You can almost see next year's Stevenote explaining that Apple TV is on board with this initiative... making the streaming video portion available on your TV)).

Think of it like this: If you could get the channels you want (and only the channels you want), what would you pay for them? My billing model (for the purposes of keeping it simple) would be $1 monthly for standard def channels, and $2 monthly for HD.

Why this works.

First off, in case you've missed it, there's a writer's strike that's been going on for a while now. One of the major issues is in regards to digital distribution, and for the sake of this argument... I am not choosing sides in the strike. I am saying that if.... say... Sprint were to come up with this sort of a la carte package and some sort of revenue split (let's say the networks get $.50 for each standard channel and $1 for each HD)... you've built a clear cut way to monitor what people are watching and can now pay the writer's appropriately (i.e. the networks are finally generating revenue off online video, something that hasn't happened yet)... and everyone ends up happy.

Secondly.. does anyone actually watch most of the channels that Time Warner provides? They come as a package... it's it's a one size fits all recipe. Quite frankly... I am positive that if Lifetime stopped appearing on my TV.... I would have no way to know... because, you know... the channel has never been on in my home. I'd rather pay for what I am going to watch. Now, some shows don't matter to me if they are in HD (Law and Order is a great show, no matter what the video quality), where as some networks would be an HD must for me. If I could get NESN in HD... I might actually become a hockey fan again.

Finally... going back to next year's Stevenote. Imagine if the iPhone were somehow WiMAX enabled. Verizon's VCast would presumably also take a hit.

In other words, Sprint would be gaining customers from Time Warner, Comcast, AT&T and Verizon. The writer's strike could come to an end and online video could become profitable.

Make this happen Sprint.

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