Will Cable and Satellite TV Soon Be a Thing of the Past?
Cord cutting is growing in popularity, with more and more people deciding to ditch cable or satellite television in favor of other options. According to Experian Marketing Services, cord-cutters grew by 44 percent in the past four years. Instead of using cable or satellite television, 7.6 million households are using high-speed Internet for videos. SNL Kagan predicts that 12 million households will cut the cord by 2015.
Although cable and satellite television companies are still doing well, this new trend in cord cutting is threatening their futures. Customers are finding that companies like Netflix, as well as other services that provide free or affordable video streaming, allow them to watch the shows they enjoy without paying for extra channels or fees. Although customers still need to have online access, just paying for the Internet (and possibly a Netflix or Hulu account) is tempting to many customers.
Streaming and downloaded videos are becoming very popular. Experian’s study showed that during a typical week, 48 percent of U.S. adults and 67 percent of young adults watch streaming or downloaded videos. In addition, the fact that tablets and other mobile devices are making it so easy to watch streaming videos is adding to the charm of saying goodbye to traditional television for cord-cutters. Each week, 24 percent of all U.S. adults and 42 percent of smartphone owners watch videos on a mobile device. The greatest amount smartphone viewing occurs between 8 and 9 p.m. each night.
The abundance of wireless technology has also made cord cutting more possible. Tablets and smartphones can now be used almost anywhere, from the home to the office to airports to many different restaurants. Because wireless service is so easy to access, video streaming is attractive because people can watch a video almost anywhere. In addition, because most portable electronic devices are easy to bring along, customers can easily take their tablet and catch up on their favorite television show or video whenever they want.