The annual Cable Show starts this afternoon in Los Angeles and it could not come at a more momentous time for the industry. Over the past few weeks cable broadcasters and carriers have reported strong results - showing higher subscription fees and higher revenue. They've also shown remarkable international growth, as companies like Discovery expand their TLC brand overseas.
And just in the past week the FCC announced new plans to regulate the internet, applying some of the rules it uses to regulate telecom companies. Just yesterday Bernstein Research analyst Craig Moffett downgraded the cable sector, issuing a report that discusses how the FCC's plans for regulation are sure to weigh on cable companies' stocks for the next two years.
Potential FCC regulation is just one of the hot topics here at NCTA. Content creators and broadcasters have been embroiled in high-stakes, high-profile clashes over the value of content. Cable content creators, demanding higher fees, have pulled programming off the air- using customers as pawns in their negotiations. Here at NCTA the big question is: how much is content worth, and how much can carriers pass along higher prices to customers before they're tempted to cut the cord with their cable carrier to watch video exclusively online?