The Great yBundling
The Great Unbundling by Ben Thompson was a core thesis I would read and re-read during my time as an equity research analyst at Oppenheimer on their cloud and telecom team given the larger telco companies began vertically integrating content; AT&T purchased Time Warner’s media empire for $85B, Comcast took a stake in Hulu before selling it to Disney for $6B and Verizon purchased Yahoo for $4.5B to create an online content entity known as Oath which the company later admitted was worthless. The TLDR of the great unbundling was that monopolies will break down as companies capture revenue directly (like Netflix) since distribution costs go to zero with the internet.
Ironically, while the telecoms were bundling in new media companies, their own legacy products were becoming unbundled; the triple play (internet, TV, Phone) was dying and everyone was buying just the internet to stream Netflix.
To read this full report and get access to Delphi's research portal, become a member!Subscribe Now