Cable television has been declining for years now and we are beginning to understand why. There are so many new streaming services like Netflix and Prime Video that people would much rather use and there are so many different programs to choose from. In addition, these platforms offer easy ways to search for something to watch by providing categories and genres. People have “cut the cord” by turning in their cable boxes and choosing to stream instead.
Cost is one of the main causes of cutting the cord. (A Leichtman Research Group research from 2023 states that), while streaming services usually cost between $7 and $20 a month, the average cable bill is over $100. Studies show that most homes only frequently view about 17 of the hundreds of channels that are included in cable subscriptions, highlighting the inefficiencies of standard cable bundles. On the other hand, streaming services let customers customize their subscriptions and only pay for the content they like.
In the early 2010s, cable was what most families used for their entertainment. There were big shows like Breaking Bad and The Walking Dead as well as live sporting events that 90% of households would watch. This made cable companies over $10 billion and this surpassed regular broadcasting. Even though families have hundreds of choices, it has almost become harder for people to decide what they want to watch. The research shows that most families only watch approximately 17 shows.
Another factor is how we consume media now. Most people, especially younger generations, are used to watching YouTube or TikTok on phones, tablets, or laptops instead of sitting in front of a TV. Streaming platforms now are built for that kind of flexibility. They offer exclusive original content, like the top shows and movies, that cable can’t compete with. Cable networks once thrived on live events and sports, but even these are now available on platforms like ESPN+ or YouTube TV.
Cable companies have tried to adapt by offering their own streaming options, such as Peacock and HBO Max, but it’s clear that traditional TV is losing its grip. Most of the big companies are choosing to shift their focus toward streaming, and they are putting a lot of money into these services. It is understandable that older generations still prefer to use cable because this is what is familiar to them, however, for a lot of people, the rise of streaming services and platforms offer convenience and variety that will continue to attract viewers.
Sources
https://www.cnet.com/tech/home-entertainment/streaming-services-vs-cable-battle-budget-which-one-saves-you-more-money/
https://www.forbes.com/sites/bradadgate/2020/11/02/the-rise-and-fall-of-cable-television/
https://www.statista.com/statistics/782509/united-states-adult-millennials-cable-purchasing-cord-cutting-plan/
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