Dear Cable TV Executives,

by Steve McKee

I don't want 300 channels. I only want 18 channels. OK, the average person wants 18 channels. I really only want six. Why can't I have just six?

I know, I know, it's the economics of the industry. But industries change, don't they? I mean, look what has happened to the music industry. I used to have to purchase an entire CD just to get the one or two songs I want, but now I can buy and build my own playlists song by song. It's funny, but I'm sure I spend more on music now than I used to.

You should know I just bought an Apple TV box. That's not your fault - since the Blockbuster Video stores near me closed (and RedBox, while cool, doesn't exactly offer a huge selection) I didn't really have a good option for renting movies. So I thought it was worth a try. Now I can select from a huge selection of movies and TV shows, and when I'm not in a buying mood I can use it to watch YouTube on my HDTV. I'm beginning to think of YouTube as the ultimate TV network - there's so much on-demand entertainment there. (Hmm. You might want to make a note of that.)

Speaking of entertainment, I've held off on getting a Kindle because I knew Apple was coming out with a similar device. I'm excited to get my iPad, not only to check my email and surf the web but to download books. I guess Apple is shaking up the book publishing industry just like it did the music industry. "Saving it" is probably a more accurate description; I'm sure my book purchasing behavior will mirror my new music buying habits. I wonder if they're thinking along the same lines when it comes to TV. I guess time will tell.

So if you don't mind, I'd like to subscribe to individual cable channels. For that matter, I wouldn't mind subscribing to individual programs. I know you won't get as hefty of a monthly fee from me, but I'd be willing to pay more per network than you're getting now. And I suspect other people would be too.

Anyway, it's something to think about. But no pressure. If you don't do it, I'm sure I can find other things to do with my time and money.


Editors Note: I'm with you Steve. I've got limited cable because I don't have much time to watch television. When I really want to watch something specific I can get it online. Cable TV is going to face much the same problem that fixed line phone service faces now (declining subscriber #'s). And, if more and more networks develop their own 'apps' for a variety of mobile or IP platforms (Apple TV, iPhone, Blackberry, iPad FloTV, etc.), it's only going to accelerate.


Enjoy this post? Subscribe to our RSS feed and join our Continuous Innovation group!

---

Steve McKee is a BusinessWeek.com columnist, marketing consultant, and author of "When Growth Stalls: How it Happens, Why You're Stuck, and What To Do About It." Learn more about him at www.WhenGrowthStalls.com and at http://twitter.com/whengrowthstall.

Uncrossing the Wires - Can Clearwire be Fixed?

Clearwire is the first major WiMax broadband service offering. The company initially launched with fixed-line replacement broadband for people's homes or offices. This puts them into direct competition with cable and DSL providers. Let's look at the landscape to see how Clearwire stacks up:

Provider	Plan Name	Price	Speed	Term
Clearwire	ClearPremium Choice	$26.99	1.5 Mbps	2 yrs
Clearwire	ClearPremium Plus	$44.99	2.0 Mbps	2 yrs (3 mos. at $19.99)
Qwest	Faster	$44.99	1.5Mbps	2 yrs ($26.99 with home phone)
Qwest	Fastest	$54.99	7.0 Mbps	2 yrs ($36.99 with home phone)
Comcast	High Speed Internet	$52.95	6.0 Mbps	0 yrs ($42.95 with cable TV)

As you can see, Clearwire's service offerings are not necessarily any cheaper or faster. In fact, existing Qwest Local Phone and Comcast Cable TV subscribers can get 4x faster access for less money. So why would anyone go with Clearwire?

They are priced at parity with Qwest on their voice bundle:

Provider	Plan Name	Price	Speed	Term
Clearwire	Clearwire Voice Bundle	$71.98	1.5 Mbps	2 yrs (3 mos. at $24.98)
Qwest	Unlim LongDist Bundle	$71.98	1.5 Mbps	2 yrs

But what about mobility? Clearwire announced a PC card service recently that is $10 a month cheaper and slightly faster, but their coverage area is terrible in comparison to Sprint and soon to AT&T as well. Here is how the mobile plans compare:

Provider	Plan Name	Price	Speed	Term
Clearwire	PC Card Premium	$49.99	1.5 Mbps	2 yrs
AT&T	DataConnect	$59.99	1.4 Mbps	2 yrs (5 GB limit)
Sprint	Mobile Broadband	$59.99	1.4 Mbps	2 yrs

Clearwire also has a home/mobile bundle, but if you've got a mobile broadband PC card, what do you need home broadband for unless it is significantly faster (which Clearwire's isn't):

Provider	Plan Name	Price	Speed	Term
Clearwire	ClearPremium Plus w/ PC	$79.99	2.0 Mbps	2 yrs (1.5 Mbps mobile)

So why would anyone signup with Clearwire?

Frankly I'm not sure why someone would unless they have no other option. Clearwire has no clear advantage.

As an outsider looking in, if I were advising Clearwire, here is what I would do:

1. Abandon the home broadband market in metropolitan areas with good cable and DSL coverage
2. Focus on rural areas and smaller metropolitan areas with poor coverage where they may have a unique offer
3. In metropolitan areas, focus on the mobile broadband market and pushing the speed/pricing envelope
4. Focus on developing a WiMax signal booster that can be plugged into any AC or DC power source
5. Explore alternative pricing models, possibly including advertising-supported service (as an option)
6. Push the Sprint partnership through to expand the value of the combined Sprint/Clearwire WiMax offering
7. Could PC cards be used to somehow improve WiFi reception?
8. Support automatic switching to faster user-approved WiFi connection points when in range
9. Partner with local phone or cable companies to be their mobile broadband providers
10. Get Clearwire technology embedded in new laptops along with antennas that boost both WiMax and WiFi reception