DISH Network Corp (NASDAQ:DISH) has made some forays into new technology with the Hopper, which allows you to skip commercials. The company recently got a favorable court decision that could pave the way for more developments over time; the court declined to prevent DISH Network Corp (NASDAQ:DISH) from selling the Hopper, ruling that it was permissible under a “fair use” theory. Ultimately, however, satellite will need to expand more to adapt to all of these changes.
AT&T Inc. (NYSE:T)
While AT&T Inc. (NYSE:T), with U-verse, is somewhat less pervasive an option, the advantage that AT&T Inc. (NYSE:T) has is its strong presence in wireless. As more and more people cut the proverbial cord and become accustomed to receiving content on smaller screens and with increasing mobility, AT&T Inc. (NYSE:T) may have a significant advantage. It already has established strong relationships with content providers, as well as strong relationships with customers that are used for paying for information delivery via smartphones and tablets. As mobility continues to expand, a comprehensive solution from AT&T Inc. (NYSE:T) has real potential.
Verizon Communications Inc. (NYSE:VZ)
Similar to AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ) is pushing to get into the home entertainment business with FiOS. Verizon is trying to make its mark in the market by offering higher speeds than competitors. Recently, the company announced the rollout of a tier capable of 500 megabits per second on the download side. The high-speed Internet business is a good one, but it is not clear that customers will be willing to make their entertainment choices based purely on broadband dominance.
But how do you profit?
Within the traditional space, I believe there are two keys to making profitable investments. The first is to focus on companies that have superior access to content. That means that Comcast has a solid base, as it has a production arm that already produces significant content. Ultimately, no matter where technology ends up, without the entertainment product to deliver, these companies could be pushed aside.
The second thing you should focus on is adaptability. Here again, Comcast Corporation (NASDAQ:CMCSA) has shown a willingness and an ability to expand beyond the traditional technology and business model. As such, both are solid for the medium-term, but counting out AT&T or Verizon Communications Inc. (NYSE:VZ) would be a mistake. Mobility will keep growing in importance, and AT&T has an edge there.
Please look for the next articles in this series soon, which will focus on the other three segments and then will consider the industry as a whole.
The article Profiting From the Battle for the Future of Television: Part 1 originally appeared on Fool.com is written by Doug Ehrman.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends DIRECTV.
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