Cable TV 'Failing' As a Business, Cable Industry Lobbyist Says (arstechnica.com)

According to a cable lobbyist group, cable TV is "failing" as a business due to rising programming costs and consumers switching from traditional TV subscriptions to online video streaming. "As a business, it is failing," said Matthew Polka, CEO of the American Cable Association (ACA). "It is very, very difficult for a cable operator in many cases to even break even on the cable side of the business, which is why broadband is so important, giving consumers more of a choice that we can't give them on cable [TV]." Ars Technica reports: The ACA represents about 750 small and mid-sized cable operators who serve about seven million customers throughout the US. The ACA has also been one of the primary groups fighting broadband regulations, such as net neutrality and online privacy rules, and a now-dead set-top box proposal that would have helped cable TV subscribers watch the channels they subscribe to without a rented set-top box. "The cable business isn't what it used to be because of the high costs," Polka said, pointing to the amount cable TV companies pay programmers for sports, broadcast programming via retransmission consent fees, and other programming. When asked about cord cutting, Polka said, "it's the video issue of our time as consumers learn they have choice" from services like Netflix, Hulu, and Amazon Prime. "It gives consumers more choice, something that they've wanted for a long time, more control from the bundle of cable linear programming," Polka said. "Our members, however, I think are very aggressive in how they are trying to provide consumers that they serve with more choice through on-demand [channels], through availability of over-the-top services, making sure that their broadband plan is fast enough to support a consumer's video habits. So, yes, it's a thing that's happening today, cord cutting, cord shaving. But as an industry, our members are well primed to be able to serve their customers with their broadband service that allows them to consume the video they want."

Comments

Speed is less important than no data caps

[garcia]

From the article (emphasis mine):

Our members, however, I think are very aggressive in how they are trying to provide consumers that they serve with more choice through on-demand [channels], through availability of over-the-top services, making sure that their broadband plan is fast enough to support a consumer's video habits.

As someone with 100/60 service at home (via cable) and 1.3/384k at my lake home, both with no data caps, I can offer up the tidbit that speed is far less important than the extra revenue stream cable providers are attempting to get through bandwidth capping.

Netflix works just fine at 1.3/384k (Amazon less so) but I certainly don't need to have 100/60 service just to watch VOD while knowing I may hit my cap if I decide to download 5 or 6 concert torrents on top of my regular usage levels.

Let's dispel with the notion that cable companies know anything about what their customers want and understand all they care about is profit for their shareholders. We don't necessary need faster, we just need truly limitless, like it always has been.