In the U.S. at least, online video offers a viable enough alternative to broadcast television that people are cutting the cord in increasing numbers. OK, the figures won’t yet worry the cable companies, but if the trend continues then they could do in years to come.
The State Of U.S. TV
It can cost an absolute fortune to be a television viewer in the States, where cable or satellite subscriptions can set a household back $100 or more. And while that includes the big channels that you actually want to watch, it also includes all the garbage no one wants to watch.
Cable and satellite companies make a fortune from this, unsurprisingly. But there is an alternative, one that has an increasing amount of content, most of which is available for free.
Online Video Viewing
The range of online options open to television viewers is increasing all the time.
Hulu offers a range of premium content from major broadcasters for free. And although a paid subscription option is likely to be introduced this year, the company is likely to keep a free option open.
Netflix‘ ‘Watch Instantly’ is available for free, basically, being available to all subscribers of the DVD-by-mail service. Each broadcaster also has their own Web sites, and offer a range of recent content on them.
And then there are the paid options, such as Amazon Video On Demand and Apple iTunes, both of which offer digital downloads to people willing to stump up the cash for the movies and/or TV shows they love.
Cord Cutters
According to a new report by the Convergence Consulting Group, this has led an increasing number of people to cut the cord, eschewing their televisions in favor of the Internet.
800,000 U.S. households are estimated to have made the switch over the past two years. And that is set to double during the next two years. While this number pales in comparison to the 100 million cable/satellite/telco subscribers, it does suggest a growing trend which one day could worry the big players.
Conclusions
One percent of subscribers every two years isn’t going to worry anyone, but multiply that a few times and cord cutters will become of serious concern. And all that needs to happen to increase the number of cord cutters is more online options.
