The days of cable television having a dominant position in the marketplace are winding down. The practice of cord-cutting is on the rise, as there are an increasing number of other viable options for consumers to pick and choose from.
The trend shows no signs of slowing down either. In fact, the trend is getting to the point that it’s outpacing projections. That’s excellent news for those that like options as opposed to not having viable alternatives, but bad news for the cable giants of the world.
Back in 2017, a staggering 24.9 million users cut the cord from cable companies and moved on with their lives. According to research firm EMarketer, it’s going to get even worse for the cable companies this year. The firm estimates that an additional 33 million users will have moved on by the time 2018 comes to a close.
Emarketer senior forecasting analyst Christopher Bendtsen explains that the cable giants are doing what they can to stem the tide, but it’s just not working.
“Most of the major traditional TV providers [Charter, Comcast, Dish, etc.] now have some way to integrate with Netflix,” Bendtsen said. “These partnerships are still in the early stages, so we don’t foresee them having a significant impact reducing churn this year. With more pay TV and OTT partnerships expected in the future, combined with other strategies, providers could eventually slow — but not stop — the losses.”
As Emarketer principal analyst Paul Verna explains, the various streaming offerings have also stepped their game up when it comes to content offerings, and that has convinced even more consumers that the time to say goodbye to cable is now.
“The main factor fueling growth of on-demand streaming platforms is their original content,” Verna said. “Consumers increasingly choose services on the strength of the programming they offer, and the platforms are stepping up with billions in spending on premium shows.”
The cable companies aren’t going anywhere, but it’s quite clear that they are facing a vastly different reality. Perhaps the rash of cord cutting will inspire some additional innovation, or at least some more budget-friendly offerings. We’ll have to wait and see on the latter, but the various companies may not have much of choice but to do just that moving forward.
Read more: Business Insider