Cord-cutters are viewers that are tired paying the inflated prices that cable companies charge for a bundled cable package, and either gone to free TV or to premium over the top (OTT) streaming services. An OTT service is a channel that is unbundled from the normal package of channels, and for a small subscription fee, watchers may view it without having to pay a multi-channel provider. That seems to be an ongoing trend that is worrisome to cable TV broadcasters. For one, Disney has reported that one for major income streams, ESPN, has lost 3.2 million subscribers. Many consider ESPN a bellwether because the sports industry has loyal watchers, and is one of the most consistent markets, as far as viewership goes. They are not the only ones having problems.
This year, we have seen other channels worry about this shift in viewership. Evidence of this, is the number channels launching their own service, or having their channel offered on services like Sling TV, Apple TV, Google Chromecast, and Roku. HBO and Showtime have both launched their own OTT services this year, but there have been quite a few others over the last two years. Large providers did not seem concerned with this change initially, but as they lose subscribers, they are starting to see the wave of the future.
That said, cable systems like Comcast can offset losses with gains on the internet side. The real question is, how will these companies respond? One thing the cable companies could do is unbundle all channels and let people just pay for the ones they want to see, perhaps like a “build-your-own” plan. However, that could have far reaching effects like causing some channels to go out of business. Still, the pricing would have to be competitive to work, but that is an option that could be investigated.
It is clear the day of the over-inflated cable company will go by the wayside, sooner or later. Given that point, they can either adapt to the new model or focus their efforts on other options. As the market for OTT streaming services grows bigger, unbundling would be a great thing to do. Until that time, you can enjoy these channels, if you are in the US.
If you currently live or plan to travel outside of the United States, you can enjoy channels like HBO Now, Showtime, Netflix, Hulu, Amazon Prime, Sling TV, CBS All Access, and live sporting events from anywhere in the world by using a Smart DNS service.
