Another Netflix Update

http://www.alleyinsider.com/2008/5/time_warner_cable_touts_web_to_tv_device

It seems that the television set is going to be the next major battleground. I think Time Warner's announcement is rather important because the cable operators are generally the point of first entry, whether it be the modem or cable box. Furthermore, they are already ubiquitous in most homes. They are staring down a tremendous opportunity to fend off the likes of NetFlix and AppleTV from eating their lunch with IPTV.

Unfortunately, history has shown the telcos and cable companies unable to innovate effectively in the consumer space. Bureaucracy. Wall Street. Whatever the cause, they just seem unable to get their act together. It is similar to the fate of the newspapers. Instead of taking their product into the future, they continue to try to defend the past. There is certainly the psychological barrier of the endowment effect. It's hard to let go of what was once a cash cow. You simply can't believe that it's going to disappear after watching it flourish for so many years. History has seen many industries fall by the wayside. Makes you respect the likes of GE that much more. Will the cable companies be able to avoid this fate before it's too late?