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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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Seems like the survey is flawed
By fleshconsumed on 9/24/2010 8:18:15 AM , Rating: 2
After surveying an estimated 250 Netflix subscribers

Of course Netflix subscribers are less likely to have cable. That's why they got Netflix in the first place - because they moved to Netflix after dropping cable or because they didn't have cable in the first place and they now found a good source for watching movies. The truth is somewhere in the middle. There is cord cutting, but it's not yet significant enough to really threaten cable companies.

By mcnabney on 9/24/2010 9:35:14 AM , Rating: 2
I woouldn't go quite that far. I think NetFlix users have a content 'safety net' and that security makes it more likely for them to consider cutting the cable. I fall into that demographic. I have had NetFlix for years, but six months ago I cut off the cable. It was actually a gradual step. First I turned off Showtime. Then HBO. Then I returned the second cable box. Finally, I cancelled TV service altogether. Having experience using NetFlix and Hulu made it possible. Oh, and having an HDHomerun, a nice antenna outside, a HTPC attached to each TV, and a server to receive all recorded content made the switch all the more easy.

Oh, and for people still on cable and dish. OTA broadcasters have a much nicer HD image. Unlike wired and satellite providers, broadcasters dump their signal out overthe airwaves uncompressed, so the image is much sharper and you don't get the motion artifacts, noise, and jaggies. For a while I used OTA and cable concurrently. Switching back and forth (A-B) between cable and OTA for an HD sports broadcast revealed startling differences. Even my 74 year old father was impressed.

By priusone on 9/28/2010 12:26:03 PM , Rating: 2
My cousins are semi-rednecks, so cable tv is right down their alley. I signed them up for a netflix account, but they got frustrated trying to order movies. And speaking of a flawed survey, look at this sight. How many people who read couldn't easily use netflix, hulu, let alone set up even a basic home network to share media? As for me, I haven't had cable for years. My friend and I share a netflix account and we get our movies and TV shows through them. We generally like the same thing, which is kinda cool when she finds something that I end up liking but normally wouldn't have ordered.

Like my cousins, though, there will always be customers who just want it to be as simple as possible.

"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
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