A ruling in the U.S. government’s case against AT&T’s (NYSE:T) acquisition of Time Warner (NYSE:TWX) is expected soon. The communications and entertainment world is waiting to see if Uncle Sam will successfully slow the desire of telecom and cable companies to gobble up every large scale content asset available. This battle to control content is primarily a play to protect existing video distribution franchises and a hedge against the risk that those information pipes into the home may be worth less than they are today.
But those video subscription franchises are doomed to extinction. And it probably doesn’t matter to the wireline provider if most of their customers take an Internet only service package or Internet and video. In many markets, the service bill will be virtually identical if you take a typical Internet service on its own or bundle Internet service and a standard video package.
