Verizon Communications Inc. (VZ), Netflix, Inc. (NFLX): A Change in Cable Television to Help Consumers?

Or, Inc. (NASDAQ:AMZN), for that matter. Amazon and Netflix, Inc. (NASDAQ:NFLX) are currently beating each other up trying to lock in exclusive deals to distribute specific shows, and even seasons of shows, to increase demand. This sort of trend isn’t lost on the cable providers. Their days of offering content via television channels are already over; it’s time to commit to a new way of doing business.

Remember, too, that this is even happening with Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) sitting on the sidelines. Yes, they both have their television models, but neither has been as committed to streaming as Amazon or Netflix, Inc. (NASDAQ:NFLX). Note, also, that Verizon IS committing to streaming with the company’s participation in Redbox Instant. So heads up.

In short, as an investment, content providers are looking kind of shaky. The channels that require bundling are in real trouble business-wise as their model just isn’t going to work any further. It’s never worked well, or they wouldn’t require bundling, and it’s going to work worse in the future. I’d be very leery of having any of them in my portfolio.

Because it’s only a matter of time before a real major player, like The Walking Dead or Game of Thrones offers itself first to a streaming service and forgoes any channel at all. There’s money to be made there cutting out the middle-man of the channel. And it’s already happening. It’s time that you made sure you’re enjoying it as it happens.

The article A Change in Cable Television to Help Consumers? originally appeared on and is written by Nate Wooley.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.