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Millions of Subscribers Leaving Cable TV for Streaming Services
suraj.sun writes "Netflix and Hulu are convincing millions of cable, satellite and telco subscribers to cut the cord and dive into video streaming. That's the conclusion of a new report released this week by the Convergence Consulting Group, which finds that 2.65 million Americans canceled TV subscriptions between 2008-2011 in favor of lower-cost internet subscription services or video platforms. Though Convergence co-founder Brahm Eiley projects that the number of people opting out of TV subscription services will begin to slow in 2012 and 2013. Part of the problem, Eiley argues, may be the rising price tag for streaming rights to programming which could cause fiscal fits for Netflix."
Let's see:
* Cable TV with the few channels that air shows I want to watch: ~$100/mo.
* Cable TV with only basic channels + Internet ~$75/mo.
* Internet only: ~$50/mo.
Netflix: $8/mo.
Between stuff available online, stuff downloadable as a torrent and netflix, WHY would I want to watch something that is:
* Only available according to the broadcaster's schedule
* Chopped up to make room for 15mins of advertising at a minimum
* Where the ads are broadcast louder than the shows
* The shows worth watching are all scattered on specialty stations each of which costs me extra $$$ to watch, or broadcast in another country but not here and simply not available.
Cable TV and the 5000 channels of shit have priced themselves out of the market, the huge number of (mostly pointless) channels have spread the advertising potential so thin that none of them can make anything that isn't a cheap reality tv show etc.
TV is dead IMHO. The only problem is that the shows I like to watch still cost money to produce, and they need revenue from somewhere. Hopefully the deals with Netflix and other services are sufficient to provide that money. Hopefully this also kills off the shitty programming that isn't worth the time and money it took to make it. Let the viewers decide. I would much rather spend $8 per month than ever see another ad again in my life.
"The first time I got drunk, I got married. The second time I bought a chimpanzee, after that I stayed sober" Arian Seid
I get the basic channels for free. How? Simple, I have cable internet and phone over which basic cable comes through unfiltered. When I asked the installer about it he told me they do not have filters for that range. Since that gets me my locals, weather being most important, its all good.
What is really sad. I was paying for basic cable. I subscribed to the basic service using the website for 12.95 a month. Then come January someone at work mentioned that their cable bill went up by $5.00 and they say increases in internet charges too. Other people later chimed in to say similar. Well I did check my bill and lo and behold, I was now being charged 17.95 for basic cable. I called, cancelled it, and still have it all because my televisions can read it just fine. Best part about it, on their website it is still 12.95 but I cannot get it. Seems the local version of the same provider could care less about the web site pricing.
TL;DR. Cable is killing itself because the right hand doesn't let the left hand in on what it is doing. Worse, they have tried to follow this combo model where they aim for over one hundred a month in combined charges. I am at 62 now with phone and internet (16/4 btw) and still have more TV than I want.
I do know one thing, more people would drop cable and sat like a rock if you could stream HBO; there are people at work who get HBO and Cable simply for Game of Thrones!) and other "premium" channels.
A side note, my cable lists a cap of 250g a month. I haven't hit that cap yet but I am wondering if the improved show quality (1080p) offered by some services will push me over.
TV schedules need to revolve around me, not some schedule determined in a room in NYC or LA. Once a provider can time shift all their content then they will have value to me, but probably not as much as they will want to charge.
* Winners compare their achievements to their goals, losers compare theirs to that of others.