People are fed up and they are not going to take it anymore! At least, this appears to be holding true for their relationship with cable TV companies.
In the first half of 2015, year-over-year growth in MVPD subscribers — “multichannel video programming distributor,” or, in plain English, a cable company like Time Warner Cable or Comcast — went negative. Over the past five years, the percent of households with cable subscriptions has been falling. But with year-over-year subscribers still seeing growth, however modest, cable companies were still able to look past what some had seen as a coming cord-cutting apocalypse. It doesn’t get worse than this.
The consistency of the decline in cable subscriptions is pretty amazing if you look at this chart. And as the article illustrates, it is a trend that does not appear to be subsiding anytime soon. The ability for today’s customers to more effectively control how, when, and where they consume their media is nothing short of a tidal shift in customer behavior.
As a focus group of one, the only time I really watch TV programming ‘live’ is for sports or very unique programming events. All the TV shows, series, and ‘pre-produced’ content I watch derives from my DVR, Netflix, HBOGo, movies in my movie library, and other channels on my Apple TV set top box. More times that not, I’m watching those programs on my iPad. And what is even more telling: my children almost never watch TV on the TV – they watch their content via their iPads.
I’ve debated back and forth with some friends who have cut the cord, or are seriously considering cutting the cord, about how they are evaluating the ‘savings’ from making such a move. The thing is that the ‘kabletowns‘ of the world know that their ‘hammer’ is the broadband internet pipe feeding into your house. Folks like Comcast and Time Warner are now offering “Internet Plus” type packages for $60-90/mo that include high speed internet as the primary value with some local TV stations and HBO as add ons, a price point that is significantly lower than the $160-200 folks pay now for bundled services. Yet when you start to add on Netflix ($10/mo), Amazon Prime ($99/yr) and any other type of monthly media services that may be important to you, the total cost starts to creep up to the same price as what Comcast was originally charging for the full Cable/Internet/Phone packages. And I’m not even including your monthly Mobile Phone bill or the cost of devices.
At the end of the day, it really comes down to a lifestyle and personal preference decision. If you are a person who values the idea of surfing around different TV channels to ‘discover’ a program or movie you have not seen, then there is value in the ‘traditional’ cable package. If you are a person like me who doesn’t watch much ‘live’ TV and is just as comfortable finding a TV series via apps like Netflix and HBOGo, then the idea of moving away from subscribing to cable TV as we know it is not that big of a deal. For companies like Comcast, Time Warner, Cox Communications and media organizations like ESPN, these ‘cord cutting’ market shifts should be a big wake up call.
Chart Source: Cable TV subscribers plunging – Business Insider