The industry is at an unprecedented point of inflection. Margins are being squeezed by increasing competition and rising costs of programming. Over-the-top (OTT) business models are threatening to cannibalize and commoditize brand position. Multidevice consumption options are proliferating. Data usage and availability of data is exploding. New IoT devices are disrupting consumer touch points. All this digital transformation threatens companies’ direct relationships with their customers. As a result, many service providers are consolidating and will continue to merge, acquire, and partner. Other companies are redefining their strategic identities by expanding their offerings and exploring adjacencies. Still others are slimming down their core business, betting on their pipe for data only.
These moves are necessary to survive but not sufficient to thrive.