The cable business is not what it used to be. And I, for one, think that is great! Why? Think about it. Cable originally was supposed to be a way to get better TV reception in cities. That was ok because that was the era when TV dominated everyone’s entertainment agendas. But then the cable companies began to realize that they were a gatekeeper to something valuable. And so they started jacking up cable fees. And man was this profitable! They grew big, bigger and bigger still.
That is ok. Nothing wrong with being big. But … when you get this big, you better hope that the REASON why you are big doesn’t change. So Microsoft dominated the PC world — Oops. With mobile eating the PC’s lunch, Microsoft has a big problem. So what is eating cable’s lunch? That is a very interesting question.
Two things. The first is streaming. Web streaming is so much cheaper and easier than cable. And it is mobile in a way that cable can never be. The second is non TV entertainment. TV is getting eclipsed by a variety of alternative modes of entertainment. These are just starting to go mainstream. As they do, TV is trying to compete by going upstream. And that is ok, but it means TV becomes more of a niche player. And cable is wedded to TV.
So cable cutting is about to go mainstream. Check this out if you want to learn more.