Blog #8

Cable television used to be the most popular way to watch TV and movies. In 2010, 90% of households in America were cable TV subscribers. This has drastically decreased since then because of the rise of streaming services. According to TechDirt, only 46% of households still use cable TV. This is very low from what I would’ve thought, but I also could not say when the last time I used cable TV was. Cord cutting is the action of cutting off cable TV to switch to streaming services via the Internet. Cord cutting has become very popular in recent years with the rise of streaming services like Netflix or Hulu, but also the increase in cost for cable TV. Cord cutting is changing the cable industry tremendously with millions of users deciding to cut the cord each year. Between 2019 and 2022, top cable competitors collectively lost 6 million subscribers each year. Most people do not find it to be worth it anymore, with prices being too high for the number of shows they would actually watch. Others are also switching because of the ad-free platform of many services. On most streaming services, you can pay extra to have no ads. Many people say they would rather pay than see the ads. 

A survey found that members of Gen Z and Millennials were more likely to be cord-cutters than members of Gen X (Statista, 2017). They also found that males are more likely to cancel cable than females. In the third quarter of 2023, three cable networks were averaging over one million prime-time viewers. These three networks are Fox News, MSNBC, and ESPN. A lot of people just do not watch cable TV anymore and it can be inconvenient and more expensive than subscribing to Netflix or Hulu. 

Cord-cutting also affects advertising. With many consumers switching over to streaming services and paying extra for no advertisements, the cable industry is losing large amounts of money. In a 2023 article by Forbes, the forecasted ad revenue for cable television is set to fall below $20 billion by 2027. The last time cable ad revenue was below $20 billion was in 2007. S&P Market Intelligence predicts cable ad revenue to be stronger in 2024 and 2026 due to the Olympics and political advertising. These are popular broadcasted events that are mainly watched on cable. However, I could see streaming services also showing it with the addition of live channels. 

There are benefits and negatives when it comes to cord-cutting. Some of the benefits are lower costs, no cable contract, pay for what you want, and streaming services that can be used on smartphones, tablets, or computers. Although you still pay fees, with streaming services there are no contracts allowing people to cancel and purchase as they please. Some of the negatives are not all streaming platforms are free, no streaming device that offers all services, and limits to how much you can stream. I only use streaming services, but my parents still have cable because some shows are still only cable. Although I can use our Spectrum cable, I don’t feel the need to. Everything I want to watch, I can almost always find on some streaming platform. 

One of the other main drawbacks is the internet power required. Streaming HD content on multiple devices also requires stronger internet. According to the Tampa Bay Times, most households find they need fiber and opt for higher data caps to accommodate cutting the cord. 

Cord-cutting is becoming more popular with most people switching to just streaming platforms. I think it just depends on preference. I can see the pros and cons of both. While streaming services have many options, usually only one platform has something or you need certain plans. Cable is also limited to what you can watch unless you pay for every channel. I think it depends on the person but I think we will continue to see decreases in cable TV subscribers.