It’s no secret that the number of cable and satellite TV subscribers have taken a sharp decline over the last ten years. Traditional TV is expensive and the average American simply can’t afford to fork out that kind of money every month for a service that isn’t fitting their needs the best way they could.
So how is the TV landscape changing? Is it actually changing and what is really happening? Cable and satellite TV is still hanging on by making some pretty big changes. Let’s talk about them.
Streaming Has Become More Desirable Than Traditional Cable
The pros far outweigh the cons when it comes to streaming versus traditional cable. Streaming at its core is cheaper than traditional cable. You can pay $15 a month or pay $80 a month. It’s a no brainer. It’s cheaper because instead of paying for a ton of channels you only flip through, you’re paying for what you’ll actually watch.
They’re Forcing Cable To Embrace Streaming
Streaming has been so widely adopted that cable providers don’t have a choice but to accept and adapt. Spectrum, who is notorious for spamming their customers with deal after deal on TV service, is now offering the Xumo Stream Box. If you’re Spectrum internet customer who pays their bill in store, you likely already know about it. Spectrum never skips the opportunity to pitch everything and anything they can.
It’s a puzzling thing to offer, although they get an ‘A’ for effort. Unfortunately, it seems like Spectrum isn’t really getting the hint that cable TV is knocking on death’s front door. You can only get their current deal of six months free if you add Spectrum TV service. While the device itself is pretty cool and resembles what we most current streamers expect from Roku, it isn’t necessary for those that are already streaming at home. It has some fun features like a voice remote, apps, and live TV but even if you’re not a cord cutter, this feels like Spectrum’s attempt to copy DISH Network’s Hopper 3 that has been around since 2016.
Traditional TV Is No Longer A Sustainable Business Model
This is a simple fact. The traditional solo TV service is no longer a sustainable business model for TV providers. That’s why what millennials and older think of as TV providers are offering all kinds of services they can. Internet, whole home Wi-Fi, wireless service, home phone and even antivirus software is now available through your cable company. Their hope is you keep adding services to make them profitable and more unlikely to get dumped after their promotional period is up.
Small Local TV Providers Are Being Acquired
This next point happens in every industry; smaller companies being acquired by bigger companies. Although it seems more prevalent since the rise in cord cutting.
Do you remember Time Warner Cable or Bright House? Spectrum purchased those companies. Astound did some acquiring too when they finalized their purchase of RCN, Wave Communications and Grande Communications. These companies weren’t doing fantastic before being acquired and now the big guys have come in to neutralize their easiest competition to defeat.
TV & Internet Providers Are Getting Rid Of Their TV Service
For some TV and internet providers, offering TV service really wasn’t working out. There’s a lot of behind the scenes work to keep turning a profit on TV. Infrastructure is expensive and negotiating content contracts often turn hostile very quickly when the negotiation isn’t successful by the contract end date.
Frontier dropped their TV service to attempt to survive their bankruptcy filing. Would they have dropped their TV service if they were turning a profit? Who knows. But no new customers have been able to get Frontier TV service since 2021.
Metronetis another provider who has dropped their TV service. They seemed fairly self aware before the drop, offering their own “TV Everywhere” service and even going so far as to encourage their internet customers to stream. They’re still holding true to encouraging streaming but it appears “TV Everywhere” no longer exists.