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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 Motoman on 9/24/2010 5:39:22 PM , Rating: 2
If they don't charge what people are willing to pay, they will fail.

Might they go to a cafeteria plan and make it financially unattractive...perhaps to drive you to their packages anyway? Maybe.

If they did, though, it wouldn't solve their problem - which is people abandoning them for download/streaming/OTA.

If they can't make a profit selling their services for what people are willing to pay, then they need to go out of business. The apparent trend is that less and less people are going to be willing to pay what they're charging currently - so unless they actually want to go out of business, they need to change.

If that means that vast numbers of relatively unwanted TV channels go be it. If it means that Comcast has to radically re-organize to make a be it. If it means that every current cable/satellite TV company in the country simply goes be it. Others will rise from their ashes and prosper where they failed.

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