This and other questions explored as cable industry looks to keep consolidation on track
Charter Communications Inc. is buying Time Warner Cable Inc. for $55.3 billion and Bright House Networks for $10.4 billion. It is the latest in a series of deals that have reshaped the cable industry.
Q: WHAT IS DRIVING THE DEALS IN THE CABLE INDUSTRY?
A: Cable companies are bulking up to survive as the number of cable and satellite TV subscribers slips — more consumers are "cutting the cord" — and competition from streaming video rises, thanks to rivals such as Netflix Inc. They also must fight TV channels over the cost of programming.
Q: WHAT HAS ALREADY CHANGED?
A: Verizon's FiOS TV service is trying smaller, customizable TV bundles. HBO has launched an online version of its content, HBO Now, that doesn't require a cable TV subscription.
Q. WILL CHARTER SUCCEED WHERE COMCAST FAILED?
A. Consumer advocates fiercely opposed Comcast Corp.'s $45 billion takeover bid for Time Warner Cable, which would have married the nation's two biggest cable providers with a media powerhouse, Comcast's NBCUniversal. Regulators worried that the combination would be too dominant in high-speed Internet service and might undermine the streaming-video industry that is changing TV viewing.
Charter's tie-up with Time Warner Cable and Bright House still isn't as big as Comcast by itself. And it doesn't own a big entertainment company like NBCUniversal.
Q. WHAT OTHER DEALS ARE OUT THERE?
A. France's Altice S.A., which was reportedly also interested in Time Warner Cable, last week bought a controlling stake in Suddenlink Communications. And AT&T, long synonymous with phones but now a provider of TV and Internet service too, is paying $48.5 billion for satellite TV company DirecTV, which competes with the cable guys.
Droga5 Appoints Emma Montgomery As Global Chief Strategy Officer
Creative agency network Droga5 has appointed Emma Montgomery as global chief strategy officer. She is the third global appointment for the agency this year, with Pelle Sjoenell named worldwide chief creative officer this past March, and global CEO Mark Green recently appointed this fall. Montgomery will be responsible for connecting and supercharging Droga5’s strategy and creative offerings globally. She will be based in its headquarters in New York City.
“Emma is a world-class strategic leader and authority that I’ve long admired and dreamt of being partners-in-crime with,” said Sjoenell. “Her work inspires the creativity that connects people and brands in ways that move business and culture forward, so I’m excited to finally be able to work with her alongside Mark, and to see her lead and further strengthen our leadership and strategy teams around the world.”
Montgomery joins Droga5 after serving as CEO of DDB Chicago. She’s been in the industry for over 20 years, and has served in several high-level leadership positions throughout her career, including as president and CSO of Leo Burnett Chicago, global CSO of TBWA, and CEO of Leo Burnett Australia. She’s also worked across a breadth of categories and multiple global clients such as Kraft, Aldi, Diageo and Molson Coors, among many others, including challenger brands and startups.
“I’m excited to join Droga5 and have the opportunity to help carve out a new path for the brand globally, building on its tremendous legacy of creative leadership,” said Montgomery. “The potential of Droga5, combined with the possibilities of Accenture Song, was too exciting to pass up. No other agency has what they have, and as marketing shifts, the chance to make creativity a genuine... Read More