If you are currently enjoying a quiet evening or weekend watching Cable TV, you may just be part of an outdated class of viewing customers. According to Breitbart, Online Streaming is the new viewing technology that is demolishing the Cable TV industry. See why millions are now switching to streaming services and watching videos on their phones. Are you now paying more for less bang for your viewing buck?
The harsh truth is clear. Matthew Polka, CEO of the American Cable Association (ACA), Matthew Polka, recently stated that Cable TV as a business is failing. He explained, “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,” reported ARS Technica.
Consider the fact that a growing number of American viewers are abandoning Cable TV viewing for the lower cost on demand services offered by Amazon and Netflix as well as Hulu and others. Just as traditional networks like ABC, NBC and CBS lost viewership in the latter part of the 20th century, Cable TV has to deal with broadband and video streaming.
For the American consumer, the bottom line is cost and choice. The less expensive a service can offer what customers want to see and when they want to see their viewing selection the more likely the service will grow and thrive. Cable TV has the real possibility of going the way of the outdated TV antenna age providers due to the new faster technology.
Polka reaffirmed this possibility by focusing on the need for Cable TV companies to become more adaptive to the new consumer base that wanted more control over their cable bundling of programming. He believes that the Cable companies are making an honest effort to compete with the new technology kids on the block.
The ACA CEO says, “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,” according to ARS Technica.
A huge problem that looms over these cable TV companies is whether or not they are too late in dealing with the growing assault on their once loyal customer base. Tom Larsen, senior VP of government and public relations for cable company Mediacom appears to claim that the cable industry is a day late and a dollar short. He stated, “Video is certainly our worst product.” The facts are sobering. The pay-tv market lost about 410,000 subscribers in Q1 2017 , according to a recent press statement by,” Leichtman Research Group. The firm’s statement showed that this was “the first time that the industry has ever had net subscriber losses in the first quarter of a year.”
The future of the Cable TV industry looks bleak unless they can adapt and compete with the faster, less expensive more diverse offerings of the new tech kids on the block.