The Small Cable Co. Squeeze

Service providers appear ready to rebel against content companies, in particular against the cost involved with providing an end subscriber 500 channels of television as part of a pay-TV package. In addition to speaking with of Neil Cox at Qwest (s Q) about how that company believes pay-TV will be over within the next five years, I also talked to Gustavo Prilick, CEO of the small cable provider Broadstripe. He explained how he’s investing more in his broadband services (he offers a 15/2 package) than in providing cable channels because his subscribers now care more about getting their TV online.

He’s not worried about video clogging his pipes, but he is concerned about how much he has to pay in order to get content to provide his cable TV customers with a slew of channels — a worry that has increased with Comcast’s (s cmcsa) NBC joint venture. In the meantime, he’s trying to come up with ways that he can use the web to get beyond the limits of his cable plant by providing local content for subscribers no matter where they are in the world.