According to a new article by FierceCable, 2014 has seen video services, the lucrative business that built the cable industry, begin to give way to over-the-top (OTT) distribution models. However, a massive opportunity has quietly emerged to possibly offset this decline: Wi-Fi.
While industry analysts are currently unable to accurately gauge the eventual size of the cable Wi-Fi business, or the exact way it’s going to be monetized, there’s a growing belief that carrier-grade cable Wi-Fi could counteract the continuing degradation in TV distribution.
“The time is coming when Wi-Fi will shift from being a ‘secondary’ network to being a primary one. Instead of thinking of Wi-Fi as an alternative to cellular wherever Wi-Fi is available, we will instead to begin to think of cellular as a backup network needed only when Wi-Fi is not,” notes one such analyst, who also suggested that OTT competition, combined with the current regulatory climate, could put a serious dampener on the performance of cable’s “video profit pool,” a forward-looking dynamic that isn’t being reflected in current projections.