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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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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.

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