Tell me more x
, there is a new speed test available. Give it a try, leave feedback!
dslreports logo
story category
Sorry Debunkers, Cord Cutters Are Very Real
They're just not being driven by Internet video yet...
by Karl Bode 08:42AM Monday Aug 30 2010
The New York Times recently issued yet another story that aims to downplay the slow but steady rise of Internet video and "debunk" cord cutting, noting that 88% of those surveyed still pay for TV service. But while Internet video is certainly on a slow trajectory, it's silly to downplay the disruptive technology when nobody's really offered the perfect, inexpensive, and Luddite-proof broadband-driven living room solution yet. NewTeeVee notes that there is shift going on, illustrated by last quarter's cable subscriber losses:
cable companies lost 711,000 subscribers, which represents the biggest quarterly loss in cable TV's history. Six out of eight cable TV operators also reported their worst subscriber losses ever last quarter. Telcos and satellite TV providers were able to pick up some of those customers, posting combined gains of 495,000 subscribers. That still leaves 216,000 subscribers who cut the cord entirely.
Cord cutting is very real, though right now it's being driven primarily by the economy, not broadband video. What happens when Apple, Google, or an unknown upstart finally creates a broadband TV service that provides an inexpensive, simple, a la carte alternative to those annoying bi-annual cable rate hikes? Several studies have shown there's a very significant number of TV watchers who are prepared to make the leap.

TV operators seem prepared to do everything possible to prevent that -- except reduce prices. Lodged in a dance of death between investors who want continual returns, and broadcasters who demand ever-increasing programming fees, the cable TV industry will likely continue to raise prices even as these disruptive upstarts start to seriously nibble at subscriber totals over the next decade.

69 comments .. click to read

Recommended comments


2 recommendations

reply to FFH5

Re: A pipe dream

I think you may find a correlation between the numer of 'parasite singles' and the size/cost of government. In the old days, it was possible to own a home, nice car and have the wife stay home and raise the children, all while having enough left over to save for the future. Oh, eh, income tax back then was less than one percent and property taxes... $12/year.