The news of people cutting their cable and using sources such as Netflix and Hulu to watch their favorite programs is a bit of a mirage. Cord cutting seems to be viewed as synonymous with a rejection of the high cost of cable television and the absurdly poor customer service the cables companies offer. However, the simple fact is that you can’t cut your cable if you want access to the Internet connection that brings you on demand services. If you have decided to cut costs by ditching your cable TV, be prepared to pay significantly more for the Internet bandwidth needed to switch to an OD option. And don’t forget that you’ll no longer have access to live sporting events.
As we wrote late in 2014, the power is moving and it is away from “content is king” to “the delivery of content” is king. The clash of the CBS and Time Warner, which CBS “won,” was only the first skirmish in a battle that the networks can’t possibly win. CBS recently announced, along with numerous other content providers (HBO for example) that they may offer a pay service option for their content. It’s basically posturing that if cable companies want too much money to carry CBS (called transfer fees) then they will simply provide the channel direct to the consumer via subscription. However, how will they be ‘sending’ it to the consumer? … via Cable.
Granted that the CBS model is likely a profitable one via subscription model, but still it seems like a feeble attempt.
Cable has successfully dominated the delivery mechanism for everything digital – all access must come through that “cord” coming into your home. So if the plan is to cut your cable bill, perhaps you may want to rethink your position … because while it may feel empowering to make a stand, the cable companies have a plan – and it does not include lower profits.
Dean MacNeil is the CMO of Tveeco a simplified TV guide app for what’s new on Broadcast, Cable and On-Demand. Tveeco is available in the Apple app store, with Android coming soon. You can also follow @Tveeco on Twitter. Comments and Questions: DM@Tveeco.com