Suddenly, there is a real question investors, customers and workers are asking. Can T-Mobile be successful in pay TV with their TVision service? The answer was yes until AT&T and Verizon both pulled out of their projects WarnerMedia, AOL and Yahoo. They are now getting back to basics, their strengths, wireless, telecom, internet and more. So, what will the future of T-Mobile be in pay TV?
T-Mobile started out as a wireless player, but now they are stepping into the pay TV sector with TVision. This service has been tried several times during the last several years without success. This re-launch looks good, but will it matter in the long run?
TVision puts T-Mobile in direct competition with the cable TV industry and players like Comcast Xfinity, Charter Spectrum and Altice USA. Going forward, all these companies offer wireless and Pay TV along with other services as well.
While I like the idea of TVision, their chance of success is now cloudy due to recent news from AT&T and Verizon. They both got into these different businesses over the years, had troubles and have now exited.
Verizon AOL Yahoo never worked and FiOS TV struggles
Verizon acquired AOL and Yahoo and had big plans. This along with their FiOS TV service made it look like they were heading in new directions.
However, Verizon recently announced they are selling off AOL and Yahoo. These two companies were a drag on the company. And FiOS is not really a hot service.
When one company acquires another, it is important to get their hands on a growth company in a growing sector. A company on the growing side of The Growth Wave I often talk about.
Growing side of the growth wave
However, AOL and Yahoo had seen their better days in years past. These were two companies who were no longer on the growing side of The Growth Wave.
Plus, their FiOS TV service is good, but not really showing strong growth.
AT&T has been very active over the last decade moving into the television space. It started with Uverse, then they acquired DirecTV. Next, they acquired Time Warner, changed the name to WarnerMedia which included CNN, Warner Brothers Studio and much more.
AT&T spinning-off WarnerMedia to Discovery
Then, last week AT&T announced they are pulling out of the television space. This was a surprise to many industry watchers. They already recently spun off their DirecTV and Uverse and now are selling WarnerMedia to Discovery.
Going forward, both Verizon and AT&T are refocusing their efforts at their core businesses of wireless, telecom, Internet and such services for consumers and business customers.
This sounds like a good move since these core services are very successful for the wireless industry and for other industries who are transforming themselves to use the 5G technology. Industries like healthcare, automotive and more.
Verizon and AT&T going back to their strong core business
Comcast made a similar move several years ago when they acquired NBC Universal. So far, they seem to be holding their own.
That’s why AT&T and Verizon saw so much potential moving into the pay TV, news and entertainment space.
They took different paths, but it was exciting to see the new direction these industries would take by joining.
T-Mobile was dying on the vine several years ago. They missed the move from 2G to 3G. So, after that slap in the face they pretty much skipped over 3G and moved to 4G. They spent several years focusing on rebuilding their core.
T-Mobile after acquiring Sprint now has spectrum
They had precious little in the way of wireless data spectrum. One year ago, they acquired Sprint. Now they have plenty of spectrum.
Since then, T-Mobile has become a strong competitor in wireless once again.
Now T-Mobile is following AT&T and Verizon into the world of pay TV. Their approach is different. They are selling a device that hooks up to their Internet and delivers pay TV to consumers.
This product sounds innovative and at a lower cost stands a good chance to be successful. It all depends on the quality of the service, if the customer likes it and if T-Mobile can promote it.
That being said, since both Verizon and AT&T couldn’t make it work, how can we expect T-Mobile to be any different?
Question about T-Mobile TVision on investors minds
This question about the potential for success with television from T-Mobile should be on everyone’s mind.
Granted, they could be successful. However, with Verizon and AT&T performing so poorly in this area, what are the chances that T-Mobile can do it?
We’ll just have to wait and see what happens next. Stay tuned. The wireless and telecommunications industry has always been the center of the universe and will continue to be a strong sector going forward as we move further into 5G.
The post Kagan: Can T-Mobile TVision be successful in pay TV? appeared first on RCR Wireless News.