God Bless Disintermediation!

March 25th, 2007 by Grant in: Technology
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If ever a non-believer in disintermediation, it’s time to see the light!

A prominent topic of futurist David Houle, disintermediation is in layman’s terms, the elimination of the middle man, but the concept stems a bit further: 

The Internet, particularly in its current high speed broadband iteration, Internet 2.0 is the single most powerful agent of disintermediation there is at this time on Earth. It is being used to change economic transaction structures, in practically all areas of commerce. It is forcing heretofore firmly entrenched distribution channels to adapt or suffer significant negative consequences. It is the visible disintermediation agent for big economic, political and cultural institutions in the U.S. and around the world.  -Source

As such, it is with great pleasure to see my local cable provider, Comcast, get slapped with a health dose of disintermediation.  Yes, that’s right, the power of the internet is set to drive Comcast out of business, or at least lower their rates.

U-verse LogoThere is a new sheriff  in town, and AT&T is wearing the badge.  A new service called U-verse is filtering into the local population, set to provide high-quality television service via, yes you guessed it, the internet.

The new AT&T service uses Internet Protocol (IP) technology, sending the TV data to your home just like your internet provider sends a web page. The difference between cable and IPTV technology means that AT&T offers TV channels on demand, not sending dozens or hundreds of programs to your TV at the same time. 

This technology could not come at a better time.  Comcast just raised their rates, AGAIN!  This means I am paying $105 to Comcast for basic cable (not even digital) and basic internet.  To put it in perspective, on average my electric AND natural gas bill is less than $100 per month.  This means I’m paying more for entertainment (although one could argue that internet is no longer a luxury) than I am for required services to live.

In comparison, I can get the same programming I get from Comcast, plus additional service that I would have to pay more for, like HD channels, the internet, on-demand movies and television shows, and a DVR, for nearly half of what I pay Comcast.

Even better, U-verse offers an ala-carte, where you pay for the channels you like.  How sweet it is! 

I was once under the opinion that cable channels should be regulated.  Now that I see the immense power of disintermediation, I’m enjoying watching Comcast suffer at the power of the free market!

See if U-verse is available in your area.

2 Comments

  1. David

    Grant-

    Thank you for the mention. Funny, I am currently writing a post about disintermediation that I will put up in the coming week after another one on peak oil. I agree that it is particularly pleasurable to see disintermediation affect industries that have long ripped off the consumer with ever constant price increases because they were monopolies. Remember when CDs always went up in price? How easy is it to find vast numbers of CDs priced below ten dollars. Gee do you think it was dramatically lowered manufacturing costs that drove the price down?

    David

  2. The Corner Office Blog - An entrepreneurs thoughts on business, personal finance and investing. » Blog Archive » On AT&T vs. Comcast

    [...] had a post a while back about how AT&T’s U-verse is coming to town, and is a welcome form of disintermediation to the likes of Comcast, of which has done nothing but raise cable and internet rates for the past [...]

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