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Tuesday, August 18, 2015

The 'Cord-Cutting Apocalypse' is Just Around The Corner!

I haven't heard this term before, but it seems cable TV business folks are using the 'apocalypse' term more and more often...!

Yes, viewers are flocking away from cable TV, to turn to streaming options. Cable TV is damn expensive. Interestingly, the first time I heard that cable TV would collapse was in the mid 80s. To live, TV needs to reach a massive audience, millions of viewers, and then relies on advertising. Cable TV do just the opposite, it segments the market, offer numerous channels options and by doing so, advertising prices go dramatically down. Airwave TV was free, and broadcasters were still making lots of money. Cable TV is expensive, and lose billions in advertising opportunities. To compensate, cable TV subscription fees skyrocketed.

Now, these high prices are forcing viewers to migrate to streaming.

The sad part – for us viewers – is that we won't save money for a while. Cable TV distributors also own the internet service providers. If they lose subscribers to their TV channels, we must expect to see our internet connection bills to skyrocket. Streaming is expensive for the provider. And for the viewer, the need to subscribe to the desired streaming TV channel will still be there.

(Airwave TV is still available, if you're curious about getting free TV!)


The "Cord-Cutting Apocalypse" on Business Insider:
http://www.businessinsider.com/cable-tv-subscribers-plunging-2015-8

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