Cable Companies Hate Cord-Cutting, but It's Not Going Away (Video)

On May 29, Steven J. Vaughan Nichols (known far and wide as SJVN) wrote an article for ZDNet headlined, Now more than ever, the Internet belongs to cord-cutters. A few days before that, he wrote another one headlined, Mary Meeker's Internet report: User growth slowing, but disruption full speed ahead. And last December he wrote one titled, Reports show it's becoming a cord cutter's world. SJVN obviously sees a trend here. So do a lot of other people, including cable TV and local TV executives who are biting their nails and asking themselves, "Whatever shall we do?" So far, says SJVN, the answers they've come up with are not encouraging.

NOTE from Roblimo: We're trying something different with this video, namely keeping it down to about 4 minutes but running a text transcript that covers our 20+ minute conversation with SJVN. Is this is a good idea? Please let us know.

Comments

Re:It's obvious

[Registered Coward v2]

Cables companies will primarily become internet providers and satellite companies will provide programming to the peeps in the boonies. Personally, I say "freaking awesome". Both industries treated their customers like crap for decades. Reap what you've sown you jackasses.

If you hated the old regime what till you see the new one. The new battle ground will be usage caps. Cable companies will start offering tiers of data. Want to stream video 24x7. No problem, just buy our gazzilion GB package at $200 per month. Oh, you want fast speeds? Upgrade to Speed plus for a $20 more. They will simply change the pricing to make money off of the pipe, not the content.

Content companies need to buy into the new model as well. The really small channels very few people watch such as SciFi or F/X will see their revenue drop significantly and some will simply go under. The big guys, such as ESPN that gets something like $6 per subscriber will not want to have to try to get their current revenue from the people who actually watch the channel(s). More than likely, when all is said in done you'll see a variety of companies that bundle packages of channels and sell them as a bundle, such as SlingTV. Apple seems to be getting into the business as well and for premium content sellers such as HBO selling al la carte may be more viable because that is what they already do so it's more of a way to get more revenue by tapping into cord cutter stain changing a business model. As for the bundlers, that sound a a lot like, wait., a Cable Company. Except now they will compete with companies like SlingTV while still controlling the pipe and its pricing.

Until Google or someone else offers an alternative pipe they have you where they want you and the hearts, minds, wallets will soon follow.