Showing posts with label competition. Show all posts
Showing posts with label competition. Show all posts

Friday, April 29, 2016

The future of set-top boxes

Two recent news items on set-top boxes:
1) The Federal Communications Commission has proposed a new regulation that would force cable companies to allow customers to provide their own set-top box.  Today most cable customers pay about $10 per month per box.  The FCC argues that once companies can compete for customer's business, costs will fall and consumers will be better off buying instead of renting boxes.
2) Comcast, the largest cable provider, has come up with a new program that will allow owners of recent models of smart TVs to have full access to Comcast programming without using a cable box.  

Looks like Comcast is The Road Runner and the FCC is Wile E. Coyote! Beep beep!

Thursday, January 31, 2013

Fighting city hall for transportation innovation

WSJ ran a lengthy profile of Travis Kalanick, CEO of Uber, this past weekend.  Uber operates an on demand city transportation service.  The basic idea: need a cab or limo right now -- we have an app for that.  Available in 25 cities, you can click on your iPhone or Android and your ride shows up shortly. 

Great idea, right?  Actually Uber has received a less than welcome reception in some cities because it provides competition to the taxicab establishment.  Wonder why it is so hard to get a cab in some cities?  The reason is that the licensing board and the cab companies have restricted supply artificially.  Uber has had to battle transportation bureaucracies in a number of cities, but so far has prevailed.  A key part of their business model is to use analytics to forecast demand and have enough capacity in place when needed.  Also, drivers are evaluated by customers -- a revolutionary idea in this relatively backward industry -- and those with poor reviews are replaced. 

Money quote: "I'm pro-efficiency.  I want the most economic activity at the lowest price possible.  It's good for everybody; it's not red or blue."