Print 47 comment(s) - last by Pastuch.. on Sep 29 at 11:59 AM

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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They better see this coming
By vapore0n on 9/24/2010 8:34:01 AM , Rating: 2
What those big cable companies should do is start offering TV over internet, where the tiers are per quantity of channels and quality. Say 50 channel tier at mid quality, 10$ a month, higher quality $5 extra, and such.

I dropped cable. 500 channels, 300 of which are music only, ppv, or crap like mtv. Now I got free OTA in SD and HD, and netflix. I miss about 5 premium channels, which I can just go to my gf house and watch if I really need to. Else I can watch whatever I missed online, for free.

RE: They better see this coming
By Denigrate on 9/24/2010 9:11:43 AM , Rating: 2
Exactly. Cable prices are far too high for what they offer. I'd subscribe to a pick and choose service that is internet based. Probably only get 5-6 channels, and they would all be sports.

OTA channels fill out my news requirement, and Netflix, Hulu, and other streaming services fillout my other TV watching needs. My kids mostly watch our TV's anyway, and with Netflix, they don't see all the commercials and I don't get the "I want" crap so often.

RE: They better see this coming
By Lerianis on 9/24/2010 1:48:44 PM , Rating: 1
In order to compete against satellite and free internet TV, cable has to drop their prices. In fact, I am really astounded that this hasn't happened before now, but the cable guys seem to be of the thought that "WE ALWAYS HAVE TO INCREASE PRICES!"

Never seen a decrease in price. Not on cable internet and not on cable TV, which BOTH should have dropped dramatically by now.

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