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The next generation won’t be interested in paying for cable.

"Over the top" appears to be taking over.   A recent survey released by Credit Suisse indicates that over-the-top TV and content delivery options like Netflix, along with Hulu and the Microsoft Xbox 360 are becoming strong contenders in the television viewership market.   

After surveying an estimated 250 Netflix subscribers, Credit Suisse found that nearly 40 percent of Netflix subscribers between the ages of 25 and 34, and almost 30 percent of subscribers between 18 and 24 used Netflix streaming services instead of cable or satellite television.   

At a media conference this week, Verizon CEO Ivan Seidenberg predicted that cable is headed in the same direction as the wire line telephone business, according to
 All Things Digital

"Young people are pretty smart. They’re not going to pay for something they don’t need to,” he said. Seidenburg added that “Over the top" is going to be a big issue in the future for the cable industry. I think cable has some life left in its model… but that it is going to get disintermediated over the next several years."

Comcast CFO Michael Angelakis obviously disagrees.
"When people say there's cord cutting, we really just don't see it," said Angelakis. "And when we think about cord cutting or the flavor of the day, we look at that as primarily competition to our VOD business, not to our core business."

In addition to the rise of over the top play options like Netflix and Hulu, Google TV and Apple's revamped TV service are expected later this year. It is rumored that Amazon may also have plans for a similar product coming soon.

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I agree
By Spivonious on 9/24/2010 8:00:10 AM , Rating: 2
We watch movies 75% of the time, and 75% of those movies are streamed over Netflix.

We'd drop cable TV all together if it wouldn't raise our internet rates. Right now we have 12Mbps internet ($45)with basic cable ($20). If we dropped TV, it would be $60 per month. For $5 I'll take the 25 channels or so that they send us.

RE: I agree
By FITCamaro on 9/24/2010 8:33:05 AM , Rating: 1
I have fiber internet and DirecTV. So my services aren't bundled.

Honestly the only thing that keeps people on cable is probably news and sports. We can get the sitcoms and other shows we want to watch from other sources. But people can't get news or sports online. So unless you want to go out to a bar for every sports game you want to watch, you have to stick with cable or satellite.

It really would be nice if could just get the channels we wanted. I want the networks, ESPNs, Speed, Comedy Central, TBS, Spike, Cartoon Network, Sci-Fi, and a few others.

I think as wireless services roll out faster speeds over the air, cable and satellite providers will have to make a switch. Eventually wireless services will be able to handle the load of people having unlimited internet connections at good speeds (10Mbit+). When that happens you won't necessarily be tied to whatever "over the line" internet connections you're able to get in your neighborhood. Cable and Satellite providers need to adapt with the times.

RE: I agree
By Acanthus on 9/24/2010 9:12:40 AM , Rating: 2
You must be in an area where the cable company hasn't monopolized themselves.

In my area it is over $60 for basic cable through Time Warner. They are the only game in town via an exclusivity contract with the county.

RE: I agree
By Spivonious on 9/24/2010 10:25:10 AM , Rating: 2
Comcast is the only cable provider here. $60 is for their "digital starter" channel lineup, which gives you about 100 channels. We get the "limited basic" which is the local networks and a couple of others like c-span, WGN, QVC, etc. Honestly, we had the higher package and realized we were only watching NBC and Fox. I would just put up an antenna in the attic if it would save us more than $5.

"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
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