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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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RE: If cable/satellite TV wants to survive...
By wempa on 9/24/2010 12:37:14 PM , Rating: 2
You hit the nail on the head with everything here ! I totally welcome all new technology that will compete with cable TV. Right now, we are paying for a higher service tier just to get 2 kids stations that our daughter watches. The cable companies easily have the technology to let us pick and choose channels, but they don't want to go that way for a few reasons.

(1) smaller cable networks couldn't survive since hardly anybody would pay for those channels
(2) the cable company would lose money since you'll only be paying for what you want
(3) more overhead on them to manage

One other thing I'd like to add is the ridiculous costs of the converter boxes. They are one of the biggest scams. The tuners in your TVs are worthless now that basically everything is encrypted. As a result, you usually have no choice but to rent their converter boxes. We need 3 of them, so we pay about $30 a month just for the converter boxes. I also love how they never include the price of converter boxes in any of their advertised prices, even though you will be forced to have at least 1, if not more, of these damn things. That's borderline false advertising to me.


By Lerianis on 9/24/2010 2:00:14 PM , Rating: 2
Smaller cable companies could survive VERY well with a 'pick and choose' plan compared to the big guys. In fact, it's big guys like Comcast whose price models and business are based on gouging people who most likely wouldn't survive.


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