The telecom companies are all over cable with their new-fiber-to-the-home offerings. The new tech from AT&T (T) and Verizon (VZ) seems to be taking broadband and TV customers from firms like Comcast (CMCSA).

The largest cable company is firing back with a plan to offer almost unlimited movies and TV shows on its VOD service. The number of total films could hit 6,000. The library of content will be made available to the general public via the interenet, even to people who do not buy Comcast services.

Why not buy some more content? According to The New York Times "Comcast is already the world’s largest buyer of content, and it is spending about $4.5 billion a year to assemble content from around the world to offer on demand." But, all of that content, even delivered via cable and the internet, may not get Comcast any new customers and may not be the magic bullet that kills new products from the telephone companies.

A wide range of video is already available on the internet. YouTube to Hulu, AOL to MSN. The largest content firms are already pushing TV and films across dozens of delivery portals. The new Comcast online product would not seem to have much advantage here.

On the TV, VOD has always been an attractive product, but the reason most companies do not offer huge film libraries is that no one wants them. Consumers watch the most popular movies. Having an extra 5,000 films that 1% of the subscriber base wants to see is hardly a solution.

Cable is grasping at straws. It will have to come up with something beyond some extra programming which most people can get elsewhere.

Douglas A. McIntyre

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