The constantly growing trend of streaming services is alarming for the cable industry. We often see this debate usually online where Cable businesses’ survival and future are being questioned. Cable companies offer more than just TV services, customers have the option to bundle up internet and digital phone services too at a discounted price. No matter how much OTT service overshadows cable services, cable companies will still be winning with internet services. Fortunately, all the devices and cable alternatives are fully dependent on the internet connection to function. Therefore, when it comes to the survival of cable companies’ business, it will survive.
In this article, we are going to find out whether streaming services are killing cable companies or it is mere speculation. Let’s dig into the details to learn more about it.
How streaming services are a danger to cable services?
There is no lie about it when we read or hear the word no-cord or cutting-the-cord. People in the United States and all over the world have loved and solely relied on cable services since the 1940s.
However, millennials are the ones who are cutting the cord and going for OTT content rather than cable TV. Similarly, Gen Z and X would probably be the first generations who might not even subscribe to cable services. This is largely coming by habit since this generation was raised in the presence of good internet connections, gadgets, and smart devices. Even the ones who live in rural areas have access to reliable internet services such as CenturyLink internet and can interact with the world 24/7.
Therefore, it makes more sense to them to get an OTT service and watch whatever and whenever they want instead of paying multiple times more for cable services. Even those who loved cable services before are turning towards streaming services because of the escalating prices on cable TV bills.
Those who still love cable services, will always love or have been loyal cable TV subscribers, it was largely because cable covered all and more to provide entertainment and information. With the accessibility of content on OTT devices, DVR became irrelevant. Similarly, people realized they don’t even watch hundreds of channels and they would rather like to have something they can watch when they’re not even home.
People who prefer to have a variety of channels to scroll through before they finally decide what to watch, always happily paid for channel line-ups.
What is the threat to cable companies?
Users can directly access streaming services by sending a request to the providers. It works differently from Cable TV, where there are multiple receivers, getting signals from a single broadcast source.
Cable TV displays the content from the channels that produce their own content. It decreases the opportunities for video producers and content owners who want to display their services on these channels. It is the reason why they are now looking forward to directly reaching the customers through other options instead of Cable TV.
The companies adopted this change because of the altering customer needs. With the technology innovation, customers can stream through their mobile phone, tablet, or any other compatible device. It has decreased the ratio of people who watched TV. Content creators took the advantage of this change in customer behavior. They monetize what they prefer rather than displaying advertisements on TV channels.
The internet has given unlimited space for content creators to share their content with their ideal customers. Cable companies also found the internet a beneficial tool for expanding their services, so they didn’t waste much of their time making the right decision. However, they didn’t research what type of content people want and the in-demand areas they should cover. Cable companies as Internet Service Providers performed their roles as phone companies. They don’t have any participation about whom the calls were made and what people said on the calls. Their role was similar to “communications service.”
The streaming plan prices have increased unexpectedly in the last two years. They also differ in terms of their rental fee and subscription charges. The companies are generating a competitive environment in the areas of prices for streaming services.
To enjoy streaming services in your homes, you have to purchase a reliable internet plan. The companies are focusing on providing the best value-for-money internet plans to their customers. The same goes for Cable TV plans and add-on services.