Spectrum, in collaboration with Disney, resolved its ongoing dispute earlier this week. As part of the agreement, most Disney-owned channels will be reinstated on Spectrum cable TV. However, eight channels, including popular ones like Disney Junior, Disney XD, Freeform, and FXX, will be permanently removed from the cable service. Subsequently, this raises the question of Spectrum’s strategy to remain competitive in the streaming landscape, especially when compared to platforms like YouTube TV and Hulu + Live TV.
While Spectrum will soon offer complimentary access to Disney+ and ESPN+ to its subscribers, it essentially falls back on the traditional cable TV bundles that have been predominant for the past three decades. Spectrum, however, owns two streaming services – Spectrum Choice and Xumo Play in partnership with Comcast. Spectrum Choice allows customers to select a few specific channels for a fee, while Xumo Play provides free access to movies and TV shows. But if Spectrum intends to keep its live TV service and not abandon it, the company must seriously consider how to deliver a premium streaming experience that competes with cord-cutting alternatives.
In today’s market, most cable TV providers offer streaming services that provide live TV channels to anyone, irrespective of whether they subscribe to their internet service. This begs the question as to why Spectrum has not ventured into this space. Major players like Comcast (with Xumo Play, Peacock, and Now TV), DISH (with Sling TV and Sling TV Freestream), and DIRECTV (with DIRECTV STREAM and DIRECTV via internet) all have their streaming versions. Even smaller cable TV companies are opting to launch their own streaming platforms or partnering with YouTube TV.
Consequently, Spectrum faces a decision—should it build its own live TV streaming service from scratch or acquire an existing company to bolster its growth in this field? One potential candidate for acquisition is Fubo. During the recent Disney blackout, Fubo and Spectrum struck a deal that saw Fubo become Spectrum’s preferred subscriber. This partnership could make Fubo an ideal partner for Spectrum’s entry into the live TV streaming realm.
Purchasing Fubo would offer Spectrum more than just a live TV streaming service in the United States. Fubo operates internationally and boasts its own original content, setting it apart from the competition. Notably, Fubo is one of the few live TV streaming platforms not currently owned by a major media company, the others being Vidgo, Frndly, and Philo, each with its own niche market.
By acquiring Fubo, Spectrum can diversify its live TV offerings beyond cable restrictions, expanding its reach as an international TV company. If Spectrum is serious about competing in the live TV arena, it must consider diversifying outside the confines of its current cable TV model. The question remains whether Spectrum will opt to build its own streaming service or acquire a platform like Fubo to fuel its growth.
There is also the possibility that Spectrum may maximize the profitability of its cable TV service before ultimately shutting it down if it becomes financially unsustainable.
