Cable Companies Beware!

Jeff Pulver posted his views on the future of Cable companies:

“…In the near future, I expect cable companies may start to suffer a similar parallel fate as the wireline phone companies. This eventually will mean billions of dollars of revenue loss without any notion of being able to replace the lost revenue. And I expect we will start to see this trend happen first in the 16-24 year old demographic.

How does this happen? It happens because there is a portion of the existing 16-24 generation which does not watch traditional broadcast TV and they are not watching Cable TV. What they are watching is TV content on the internet. And when these kids leave home and go off to college, they are not signing up for cable TV service in their dorm rooms. Instead they are continuing to watch their favorite TV shows thanks to BitTorrent or are going online to the network websites to catch up with a missed show or in some cases they are also going to iTunes and purchasing the shows to watch on their video iPods and computers…”

I agree, though believe that there are also the 25-35 age group who are willing to consume media in non-traditional ways, as long as it is good.

It seems to me that these industries are kind of dinosaurs, looking at the meteor coming and thinking that everything will be ok. Just like some of the big production companies, missing the fact that people create good content for fraction of the money they are spending.



5 Responses to “Cable Companies Beware!”

  1. 1 deb schultz May 2, 2007 at 2:53 pm

    Amen. Alas I no longer fit into the 16-24 category but darn if I am not consuming media in lots of non-traditional ways. Also – the definition of what “media is, is” is changing.

  2. 2 Dan Masq May 2, 2007 at 8:59 pm

    I’m glad that media is making this shift. My roommates watch digital cable out front and I pay part of an extra 30 dollars a month to have cable on top of our internet service. I would so much rather watch TV on my computer screen than pay more to have to leave the room and watch it on a fuzzy, energy guzzling TV.

  3. 3 Barlow Keener May 3, 2007 at 1:27 pm

    The television industry is very savvy and will not move to the internet in a big way before it pays to do so. The first to land on the beaches do not have good survival rates. Once the ground has been ploughed, the better capitalized firms will move and make their mark. Barnes and Nobles is doing well both on internet and in the “real” book stores. Another example is newspapers, although newspaper subscribers went down 14% in Texas the last 6 months, the WSJ subscriptions went up .6% and Murdoch is making his move on the WSJ and following the money.

  4. 4 cable service February 28, 2008 at 2:47 pm

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  1. 1 The Affari Edge Blog » Blog Archive » The Future of Television: Change is Coming Fast Trackback on May 3, 2007 at 6:36 pm

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