Cable TV Companies Could Lose Nearly $1 Billion in the Next Year From People Ditching Their Subscriptions (businessinsider.com)
Nathan McAlone, writing for BusinessInsider: Cable TV companies could lose nearly $1 billion to people cutting the cord over the next year, according to a new study by management consulting firm cg42. The firm estimates that 800,000 cable customers will ditch their subscriptions in the next 12 months. Cg42 expects each customer to be an average loss of $1,248 annually, and losses to approach $1 billion over the year. Cg42 also found that the average cord-cutter saves $104 per month by canceling. Some in the industry have argued that cutting the cord doesn't actually save you money if you subscribe to a bunch of streaming services like Netflix, HBO, and so on. But that point of view neglects the reality that many cable subscribers pay for those streaming services already.
Or perhaps you use landline internet, the other monopoly?
Unfortunately a great number of us don't have any alternative once we cut the cord.
Sure, I'm not paying $80 a month in cable bills any more- but I'm still paying $50 for the data (no option- they have a monopoly on connections fast enough to stream). So- then I add Hulu, and Netflix (the wife has Amazon from a student account). Bang- I'm right back to the price I started with.
"That's the way to do it" - Punch
only reason i have cable is that i get a special rate of $100 a month including 200mbps internet. i only watch sports. sometimes my wife watches the reality shows and some sit coms. i might watch The Walking Dead this season although at this point it's like a daytime soap, but with zombies and violence. i'll also watch Ancient Aliens when it's on but by now they are rehashing the same crap from previous seasons
my kids never watch it because finding something to watch on their schedule sucks
i never watch anything else except sports because it's the same dumb sit coms like the 70's and 80's and for movies the commercials ruin the experience
i've cut the cord once and only came back because of the special rate
They won't lose any money, they just might not make as much. No company is entitled to continued steady profits.
Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
Maybe if they stopped putting huge ads with flashing animations and sound overtop of the content, it would actually be worth watching some of their content.
At least that's why I cancelled my cable subscription.
Customers have been clamoring for a la carte for decades, but the cable cos. always refused to offer such a service in favor of the more profitable bundles. Now it's coming to bight them in the ass, since people can do an end run around them by using streaming services and avoiding the ESPN tax.
I happen to have a 'Double Play' package from Xfinity where I have one cable box and digital economy rolled into my "Blast! Plus" (includes HBO) and since it's an old grandfathered deal, I'm paying only $3 more (Broadcast Fee tax delaio) for the package as a buddy of mine in the same town who has only the internet (without the TV at all).
With the setup I have, I have Playstation Vue for TV service, the HBO Go App installed on the Roku and Fire Stick/TVs and activated under my Comcast account, plus use the ESPN Go App for live sports (from ESPN + ABC airings), etc. There isn't much I don't get that I would even watch anyhow with the combo, and I don't really pay more because of the way the Apps are activated vs having to pay a monthly fee for the HBO Go etc.
Granted this doesn't work for Netflix, Hulu and similar apps, but even if you add in $9 for Netflix, I still come out well ahead of where I was with Dish.. and even Dish + Comcast for my Internet got me more of the actual channels I'd watch at a lesser rate vs using Comcast for everything
More channel choice is needed.
Why can't ESPN be it's own $8-12 /mo package?
Local RSN's $2-$10 /mo
and so on?
Guess which service will get more expensive in the near future?
I pay about as much with data + streaming services as i would with just data and tv. Why pay for tv when streaming is so much more convenient? Plus, after i binge a few things, i can suspend or cancel some of the streaming stuff (i'm looking at you netflix) until the next season of stuff is released. Hell, i don't even have to pirate stuff anymore, so the content creators are happy.
Just like they do every year to make up for cord-cutters.
Good.
They'll just increase the cost of internet to compensate. Eventually, cord cutters will eventually wind up paying as much just for their internet as they were for their internet + TV bundles packages (unless you're one of the fortunate ones like me who have municpal run internet).
Traditional broadcast is failing to adapt. Their business model is linked to people that are literally dying off.
Tell a kid with a smartphone that he has to sit in front of a TV, at a certian time.. Just to catch one episdode of a show he wants to watch. Oh, and he doesn't get to pick which episode it is.
He'll look at you like you're retarded. He's got hundreds of other entertainment options in his pocket, on a tablet, at his PC, or even at his couch.
His parents will put up with that shit, but he won't.
Any of you actually sit down and watch TV lately? It's seriously for morons. Fantastically stupid shit shoved in to your eyeballs.
I used to wonder why we've got such a cultural divide in the US. No longer. TV turns you in to a fucking idiot.
If they let people only pay for the channels they want rather than force them to buy a whole package of useless crap, far fewer people would be cutting the cable.
The cable companies have known for years that people want this, but they remain too greedy/arrogant to provide what their own customers actually want, so the market is rightfully killing them off.
At some point they will finally be forced to deal with their own egos just to survive, but by then it will already be way too late for them, because most of their market share will have already moved to other sources such as Netflix, Amazon etc. that already do a much better job of meeting individual needs affordably.
That's how they will make up the difference.
In response they will simply raise rates. Surely that will save the industry.
Every time they say "Ancient Alien theorists" on that show, I want to box my ears. I suppose it sounds better than "crackpots".
HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
Let's hope so (^.^)
Saving money wasn't my main reason for staying off cable; it just didn't make sense to pay for TV AND still be hit with commercials. And, in NYC, having to pay a sports tax for crap I don't even care about. Yeah, I'll stick to Netflix. There will be a study claiming that streaming services keep us on the couch longer; thereby making it unhealthy.
The truth is that many more people are cutting cords than the numbers reflect. Cable companies mask this by creating bundles that have more services that are cheaper than going with just data. Many people keep a minimum TV service because it's cheaper than the unbundled Internet service. Some cable companies put data caps on only for non-TV customers. They want to pad their phone sales, too, so they'll do the same tricks there, making a triple play cheaper than a double play, at least for the initial contract period. (I did that once and never even had a cable modem with a phone-out plug.)
If cable companies were forced to price Internet, TV, and phone completely separately, I think the number of cord cutters would jump dramatically.
It's an election year, and I guess people are voting with their wallets, or voting against the lack of choices or against bundling up/overcharging or going with Netflix or Redbox.
Those billions are going to be spent elsewhere, maybe less on this luxury, and there isn't any person going to be affected by my lack of sympathy. Corporations are out there to make money; I'm here still waiting for my 24x7 cindy crawford channel (apologies to Denis Leary)
WARNING: Smartphones have side effects--most of them undocumented.
I was paying $120 and they rapidly raised that to $200 with no changes in programming.
So I cut it to $70. Bare minimum cable was $10 so I did go for that. Otherwise would have been $60 (with taxes) for 1/25 service.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
lower the price and sales will go back up. This is not complicated.
At what point do you suppose that that crazy, crazy idea of offering better value for the dollar, and a better pricing model, to actually compete for customers will dawn on these industry geniuses? Telling customers who are dropping your service "Your stupid. You aren't saving money but don't know it" when the customer can plainly see that they are saving money is not likely to ever help your business.
What we see though is the universal behavior of business accustomed to monopoly power, and to extracting profit though rents (no not the apartment kind). They abuse power to soak their customers, who then seek any relief available.* And the reaction to that is... never to cut back on the abuse, it is always something else - getting more monopoly supporting laws passed, whining at the customer, plain old denial of reality, etc.
*Unfortunately changing the laws is not a relief available to the individual, and it is extremely difficult to overcome industry influence on lawmakers for collective relief.
Second class citizen of the New Gilded Age
Cord cutter, here. If you're thinking of joining me by switching down to an internet-only service, you need to know this: Your cable company is going to lie to you. They're going to tell you all kinds of stories about how they don't actually offer internet-only options, or about how it's actually less expensive to have a bundle than it is to go internet-only. Don't believe them. There is exactly one way to get the full truth out of them: Tell them you're cancelling. As soon as they transfer you to the retention department, someone who actually knows what they're talking about will happily give you that internet-only connection you're looking for, and most likely at a reasonable price, too... at least, for the first year, anyway.
Sidenote: Obviously, this only works if you have at least one other viable broadband provider in your area. If you live in one of the many broadband monopoly areas... well, in that case, you have my sympathies, because you are well and truly screwed.
We were paying $180/month with Comcast for 25Mbps internet, 2 basic cable boxes, and HD, no movie channels
We adding 40Mbps DSL to our CenturyLink Landline for $25/month. Amazon Pirme - $100/year
Netflix 4K $11.99/month
Sling TV (Espn, Espn 2) $20/month
OTA $0
Tivo - $120/year (we had this with Comcast as well.)
"I say we take off, nuke the site from orbit. It's the only way to be sure."
Stop charging $7-$10+ an outlet for rent / outlet fees / tv fees / mirroring fees.
The rest of what I watch are local OTA available. To get those 3 cable channels I have to get Advanced TV Preferred (280 channels) and the Variety Pack (18 channels). Fucking retarded. I'm about ready to cut the cable and only use Roku and p1ra73bay.
Yes, send them to mars. Isn't that where men are from?
love is just extroverted narcissism
Uh, buh-bye. I haven't paid for cable for close to 10 years because it's a rip-off. Hello, Playstation Vue, though!
If I could find another company to provide fast internet I would drop the cable companies completely.... Off a fucking cliff.
ISPs literally give 0 fucks about what the people want, and just keep doing whatever the fuck they think will get them money... even if they could have had more money by roping in more subscribers by simply offering the shit the customers say they want. I hope one day the carriers will be forced to feel the pain of the raping they've been dishing out for the last few decades. They're worthless pieces of shit and the only reason people are with them is because they won't let any better alternatives exist.
I live in Europe.
I pay 16Euro per month for 70Mbit/s Internet connection.
A "landline" is included in the price - IP telephony device included - with 20 free minutes to landlines here in my town and free calls within provider network and reasonable prices for calling cellular providers or out-of-town numbers.
AND, included in that 16Euro/month package, I get some 100 cable channels, with 15 most popular channels having an archive - ability to play, and skip adds for any program from the last 20 days.
I pay about 7Eur per month extra for package with various Discovery channels, History channel and cartoon channels for my kids (cartoons being the main reason I keep the extra package, because most documentary programs air various reality shows 95% of the time)
This is what you get when you do not allow companies to create artificial monopolies for the last mile.
I live in town and 5 different providers have fiber optics cable leading to my apartment building. People living in small distant villages have more limited choice, but they still can get ADSL for some 10Euro/month for uncapped contract, plus satellite package for TV for some 10Euro/month for about 100 channels.
As most of the Olympic organization's revenue comes from media rights, reductions in the cable subscriber base would reduce those organizations' ability to bid for Olympics coverage.
Might the games migrate to a pay-per-view model? True á la carte would starve less-popular sports of revenue, while all-inclusive packages would be too expensive for most potential viewers. If the current system that amortizes the massive expense over years of everyone's bills is threatened, it's difficult to see what might replace it.
// DevsVult: The Machines Will It
But what I don't understand is do Americans have Internet without cable tv? Because that'd be hard to imagine here. It just comes in a package, all through a fiber cable. If you wanted internet alone, that's almost as expensive as the whole thing, including the telephone.
Paid my cable bill last night: the broadband chunk of the bill is now ~$20 higher than the (now sports / entertainment tier-free) TV bill.
Over the last few years, the rate of increase of the broadband part has out-paced the TV rate increases for... reasons?
Bottom line: Big Cable will get their monthly three-figure pound of flesh even after everything is TCP/IP-based.
Plus, they need the cash to pay their right-wing prostitutes for banning community-owned broadband systems.
The only content you can watch on TV uninterrupted. Its no surprise people are moving to netflix. plus being forced to pay for 100++ channels i will never watch in a zillion years pisses me off to no end.But moving to netflix isn't going to happen i like first run tv shows,movies SPORTS..And don't want to wait a year for them to be released to the streamers..
Jack of all trades,master of none
Cg42 expects each customer to be an average loss of $1,248 annually, and losses to approach $1 billion over the year. Cg42 also found that the average cord-cutter saves $104 per month by canceling.
And after further investigation, Cg42 has discovered there are 12 months in a year.
"Some in the industry have argued that cutting the cord doesn't actually save you money"
Like the one time when I had a cable company try to convince me that I would save money by spending $50 on Internet equipment installation (hooking up a damn modem)???
I said, "Uh, how would I save money if I'm spending $50 for something I know how to do for free..?", which they then replied with, "You just are."
The argument was ever so convincing. But, in the end, logic prevailed and I ended up NOT spending $50 to plug end A to end B.
I like being able to pick what I want, rather than reality TV shows being on every channel and that's my only option. History Channel reality TV, discovery channel reality TV... ARGH!
Without a doubt, there's too many options and not enough variety in the content. The service is over-saturated. The market needs to contract, and now's a great time for that to happen. I hope we can get rid of all the bloat and wasted programming out there and concentrate it down to less channels with better programming.
Same boss because once things start shifting the Cable TV companies will acquire Netflix/Hulu/youname it.
Hulu LLC is owned by Disney, Comcast, Fox, and Time Warner. All four companies own broadcast TV networks (ABC, NBC, Fox, and half of CW respectively) as well as mid-tier cable TV networks. Comcast is also a multichannel pay television provider.
Correction: Cable companies could potentially not meet corporate expectations.
No profit is guaranteed. I'd really wish articles that spoke about media industry profits, didn't write them that all profit they state to earn, or could earn in the future are guaranteed, and anything less is industry loss. It's utter crap. No industry has guaranteed profits, beyond contract lock-in, back by legalese. And even then, if the paying party honors it.
The idea that any change to the status quo for media companies, especially cable, when it comes to profit, is somehow industry shattering is absurd. Money is being shifted around. In this case, not as much is potentially going to cable companies, and is likely going to online streaming outlets instead. Just another case where cable companies fail to adhere to changing markets. They deserve to die a painful death, and the sooner the better.
Now even the damn "Premium" pay channels i.e showtime, hbo have ommercials.
WTF?
Now they're double & triple dipping the f'n ad revenues.
They won't lose any money, they just might not make as much.
TFA doesn't say anything about losing money. It says they will lose revenue, i.e. they won't make as much.
My "promotional" period had run out and Cox jacked up my cable and internet $50/mo to $200 a month. I offered to sign a new contract for a cheaper rate (having been a customer for the last 8 years or so) they said no you would need to add home phone. I bought some Google Nexus player boxes for my TVs subscribed to Hulu (already had Netflix with the cable) and have enjoyed saving about $140 a month. Recently I discovered SlingTV's $25/mo package had my local Fox sports station so I could watch baseball without using something like Kodi/Castaway so I have that for the moment. May keep it after the first month may not.
I forgot to mention the pricelessness that is realizing your kids have absolutely no idea what a "commercial" is. I am proud when they are utterly confused (then totally frustrated by) commercials when forced to endure them. That could, even more so, be the nail in Cable TV's coffin during the next generation.
It could also backfire and kids take commercials seriously due to being naive, leading to an even poorer next generation...
I ditched mine because they said (Time Warner) they were going to be removing analog channels from the single-coax medium to free usable RF bandwidth for "up to" 300mbps data. My telco's gigabit fiber (measuring up to ~=800mbps in real use) being $65.99/mo and the 50mbps being $49.99/mo for those who have FTTN.
TW said the price for their new enhanced 300mbps service would be around $160, but it wasn't available until about 3 months or so from then. I laughed on the phone to the person I was talking to and asked if they had any idea what their competition was. They started blabbering about how their service was better because of the enhanced email and streaming channels they offer for a low price of $1.99/mo, and HBO for, like, $30/mo. I asked if they were aware that the telco has generator backup and stepped backup power delivered through the copper lines, as well as backup by battery on all equipment along the way; they said something about their service having a 99.99% uptime and few outages. I said, "Sure. I had no outages after using you for over 10 years because where I lived the power didn't fail. If it did, I would have been without service. Wait a minute, now that you mention it, I did lose service a couple of times because of loss of power in an area where your fiber backhaul ran out of backup battery power way upstream, but it was so long ago I barely remember it. What can you do for a customer of over 12 years to avoid having them (me) cancel service right now?"
The answer was "Well... uhhh.. we do have lower speeds that will be available within the next 2-6 months for a lower price."
I laughed and hung up because I really didn't have anything to say that would make sense to the minimum wage, call center, screen-reader on the phone.
They lost business that fast. I used my 'droid for data at speeds faster than theirs for 3 days until the telco ADSL via FTTN was installed.
The Fine Article asks "Where are they going?" and talks about some other services (SlingTV, Hulu, etc.) but that fails to answer the more important question of "How are they getting there?"
Quite frankly in a huge part of the country your connectivity choices are cable modem (fast), DSL or related (kinda fast sometimes depending on where you are), sometimes a WISP (probably slow and expensive), or 4G tethering (you thought cable was expensive?). Fiber is not an option for most of the country and is AFAIK the only thing that can compete with cable for speed.
So, is this all just talking about eliminating the TV portion of your monthly bill from the cable company?
fencepost
just a little off
I dont care if UVERSE is not as fast as comcast. They are cheaper, very reliable, and good enough.
I dont need 50 mbps, I have 20 mbps internet plus tv, plus landline phone at a pretty good price. .
Cable will lose subscribers, but they won't lose the money those subscribers haven't paid yet. It's like trying to Chicken-Little the fact that cable will "lose" revenue from subscribers that die in the next year.
The fact is, the TV market is changing and the providers continually refuse to adapt. If cable rates increased at less than 6 times the rate of inflation, that would help save their asses.
"Cable companies raked in at least $1bn last year from people who really didn't need to be paying them."
Feels a little different that way.
-Styopa
Still no commercials on Netflix, though.
Profiteering! Profiteering! Profiteering! Profiteering! [throws chair]
If they really wanted to copy the competition, Comcast would create their own channels and fund high-quality programming that isn't available elsewhere.
I think that was Comcast's strategy in buying NBCUniversal.
If the cable providers stand to lose $1 billion in subs for TV, I predict they will try and make it up by raising Internet connections prices by nearly $1 billion. It's not like we have a real choice for broadband in most areas.
In many towns you have one cable provider and the two satellite providers. Some bigger cities have more than one cable provider but that does not seem to reduce rates much. I gave up cable TV a long time ago because in our town of 3000 we got a lousy package from the cable company. I used to miss the lack of sports without it, but I grew tired of the over paid babies anyway. I still see enough through over the air programming to get my fill.
I have practically zero interest in any show that is being fed into my house. That's the biggest problem. Why am I paying for cable when I scan the channels for something interesting to watch and maybe hit on about 30 minutes of content I give half a crap about, when the rest of it is mindless background noise at best, and horribly irritating otherwise.
Meanwhile, I can put on stuff I want to see off Amazon Prime; watch the whole damn series, and it not cost me anything more than my Prime subscription which has plenty of other benefits that I use regardless of the TV aspect or not.
The biggest problem really is that there's no content produced today that is worth the price...I get far more out of watching old shows and old movies that I missed than watching the BS that's on now.
$278 Then vs $126 Now. Previously, Netflix: $20, Amazon Prime: ~$8/mos and $250 for TWC (incl. DVR, cable box, modem, phone and Internet).
Netflix: $10, Hulu: $10, Amazon Prime+Fresh: ~$11, Google Music Family (+YouTube Red): $15, TWC Internet: $50.
+$20 for Vonage.
> Cable TV companies could lose nearly $1 billion to people cutting the cord over the next year
(Score: -1, Stupid)
Please correct me if I'm wrong, but other than the Web they don't seem to have much competition. Look at Japan or Korea: By comparison, those countries get their services for free compared to us. Maybe the threat of competition will bring the cable companies prices to something sane.
Only old people know this, they aren't the target audience.
Prices go up while content and service go down. I will ditch cable soon, I already cut back quite a bit. It was about to be more expensive than a car payment.
Well, of course, the cable co's try to shove bundling up your bundle because it's more profitable for them.
A good many people, including me, want to ONLY pay for the specific content and channels we want. Bundling has been a crappy deal for us.
Table-ized A.I.
Comment removed based on user account deletion
After being excessively exposed to https://youtu.be/rA6GLHTdcVo, https://youtu.be/OPlEF2JvEr8, and https://youtu.be/TC-LgSF89Xc, I wound up being a permanent resident at https://en.wikipedia.org/wiki/Western_State_Hospital_(Washington).
Higher prices, less service, as well as a really poor program offering, even on the expensive channels, has made cable TV not so good to have. The one good thing from them is high speed net service. I will probably be cutting back on my cable expenses this year. Roku and Netflix can take up the slack.
Higher internet prices, from the cord you 1/2 cut...
I just switched to a low-priced bundle from my cable company with 150/20 service, but the cheapest "internet only" service available to me (20/10) was only like $10/mo cheaper than the TV/phone/net bundle. Is this not the case everywhere? How the hell do I save $104/mo?
I'll be ditching cable soon. I've got a decent indoor HDTV antenna though I plan to install an outdoor one. I won't be dropping cable internet, just the channels.
But...football (sigh).
hey white male
blah blah blah
as a bonus, women will be much more interested in you also
Hmm...while your anonymous and cowardly concern for my welfare is truly touching, I should let you know that I don't swing that way...and I think my husband might object, even if I did.
#Presumptuous-assholes-are-presumptuous
"I love animals! Some are cute, others are tasty, what's not to like?" - Betsy Schroeder, Jeopardy contestant
Just don't watch TV.
Hope this leads to a redefinition/purpose of 'cable' service; to that of providing only internet service as a utility.
Since internet service is such a necessary thing these days, it makes sense to have it regulated as a public utility.
Providers can then add on other fully optional 'bundles'; yet allow freedom to go elsewhere for streams. Yet, the connection to the web needs to be separate and regulated.
The monopoly that cable companies have now is NOT in the interest of the general public.
Here's my plan (once cost is within reason):
Engage NATO allies to pay their share, so that...
The US Defense budget can be halved, which would allow...
Infrastructure (and other needs like education) can be vastly improved (like bridges, and internet access)...
Then, Internet service could be reasonably priced, and add-on pkgs/streams could (possibly) be more reasonably priced as well.
Self-importance and self-indulgence is the root of ALL evil.
...because Comcast charges me less if I subscribe to TV+Internet than the cost of Internet alone. Its even cheaper if I get cablecard, so I have one taped to the wall where the cable comes in. That way I can find it if I ever cancel service.
Originally it was a special deal but when 11 1/2 months were up I called to cancel TV and the rep said he'd extend it for a year. And also told me to call next year and he was sure they'd extend it again.
I know I'm helping them scam the TV networks but since I don't like them either I figure why not?
Less subscribers = more expensive services for those of us that stick around.