Though cable providers still have plenty of subscribers — roughly 101.7 million Americans, in 2014, according to research firm IBISWorld — those numbers are declining. The firm predicts that cable providers will lose a net of around one million subscribers for each of the next several years, reaching 97 million in 2019.
One of the reasons for this subscriber defection: Consumers are increasingly embracing (often cheaper) cable alternatives. Indeed, PricewaterhouseCoopers notes that subscriptions to cable alternatives like Netflix (up 25% over 2013), Amazon Prime (up 14%) and Hulu (up 3%)—each of which costs around $8 a month—are on the rise.
You may have more reason than ever to cut the cord, as cable TV rates are rising, even as more relatively inexpensive streaming options emerge. In 2015, research group NPD expects the average pay-TV bill (for basic and premium channels) will hit $123 a month, up from $86 in 2011.
What’s more, in 2015, there will be even more streaming options to watch: In October, HBO, Univision and CBS all announced new stand-alone streaming services. “There are a lot more options out there so we don’t all have to subscribe to cable anymore,” says Sarah Kahn, an industry analyst for IBISWorld.
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We killed Direct TV on January 1st (had been a customer since Primestar days). It's not hard to do other than missing some sports games. However, even the Superbowl was broadcast online this year, so we didn't miss out on that.
ReplyDeleteWe bought a digital antennae for $50.00, slapped it on our interior wall and pick up WMDT, WBOC, MeTV and 2 PBS channels. Bought a TIVO Romeo OTA (over the air) for $50.00 plus a $15.00 subscription fee per month (felt is was worth it for our young son who loves PBS shows, though quite a few are already on Netflix). Netflix is $9.00/month. So we're paying $24.00/month versus Directv's ridiculous fees. No NBC but we don't watch that channel anyway. Thought we would miss a lot, but with the ala cart selections on Netflix, we find we're catching up on shows we missed, like Blacklist. If we need a hot new movie, we'll pick it up from Redbox or get in queue at the Public Library.
If you're a sports fan, that's where they get you. Until things become a little easier there, I think a lot of people will stay with cable or Directv.
Only problem is that most internet services are provided over cable!
ReplyDeleteWhat's the other 9 things?
ReplyDeleteAnd how are you going to get that internet connection to stream these services to your TV? Cable, that's how. And if you don't bundle your internet with TV service, the cable company will just charge you more for internet. The is no escape, unless you're willing to just do without programed TV.
ReplyDelete