Cable TV is dying a sure but slow death. This has been written about for a few years now and even though many predictions regarding what’s going to kill it have come to fruition, cable continues to hold on. Maybe its death is inevitable, as it looks like the cards have been stacked against it, but its death will probably be slower compared to the forecasters’ predictions. This slow death will help cable tv providers find a new solution to help them compete in the landscape of streaming devices. Within this article, you will see why cable is climbing an uphill losing battle while trying to stay alive.
A Slow Death
From 2013, cable TV started undergoing a lack in subscribers, and this loss grew wider in 2014. In reality, based on Nielsen ratings, TV viewing was falling approximately 10 percent per quarter. There are lots of good reasons for this particular dilemma.
- New competitions have emerged against the traditional system. Netflix, Inc. (NFLX), Amazon.com, Inc. (AMZN), Sling TV, Crackle, and Sony Corporation (SNE) offer streaming content, substituting the set-top box/TV combination, the only real means to watch entertainment. According to Netflix, one in three households in the USA features a Netflix subscription, making the overall subscribers approximately 40 million in the united states and 60 million worldwide, accounting for approximately 10 billion hours of content found in the first quarter of 2015.
- Individuals are no longer ready to pay for plenty of stations they don’t really watch. Streaming options allow you to pay for what you really are going to watch and take advantage of, and even those who still have cable are switching to smaller bundles.
- Media companies that have the most wanted content, such as ESPN or HBO, saw this shift in consumer behavior and have begun trying out offering their streaming content. Even smaller networks are determining strategies to get content into a streaming format. As stated by BTIG Research, “We won’t see many stations outside HBO that have the clout and crowd to really go at it alone.” However, the marketplace will increasingly splinter into lanky packages available to anybody using an online connection. We expect a lot more ahead, targeting distinct classes and demos, each using a special means of packaging for its own network.
- Cable bundles are becoming more expensive and consumers aren’t willing to pay for them anymore. Between 1995 and 2005 cable invoices rose three times faster than inflation.
- Americans tend to be wired now and like the simplicity and advantage of switching between devices such as laptops, cellphones, and wearable (watches) which have internet connections. The info backs up this transition. According to Nielsen, the amount of broadband, by households only, grew by 112 percent in 2014.
The Most Important Thing
Whether it was the decreased cost or just desired content, our viewing habits are changing the way in which the industry functions. The concern is will the traditional television companies be ready to change before they have been pushed outside?