Is the era of "cheap, all-you-can-watch content” (for consumers) ending? This is the contention of a recent Guardian article examining challenges telcos face. Connecting the dots between writers’ and actors’ strikes, booming broadband use, increasing infrastructure costs and streaming, the article taps into the old adage: ”Nothing in life is free”. The notion of ”cheap” really depends on where you sit in the value chain and how you can leverage the resources available to you.From the telco perspective supporting the boom in streaming use is not “cheap” but there are strategies that can be applied to regain control.
First, it’s important to understand the economic drivers for streamers and telcos/service providers. The consumer is the source of revenue either directly in the form of subscriptions (for streaming services and broadband) or indirectly from advertising. For now let’s just focus on the supply chain players or the cost of sale elements from the streamer and broadband provider perspective.