A lot has changed in the entertainment industry for the last two decades. The traditional cable TV service we grew up watching is no longer the same. It has evolved and taken challenges on all fronts. It had to take on the challenges. If it did not, it would have been wiped clean by the competition.
Cable TV faces different challenges on two major fronts. The first challenge is posed by streaming services. Back in the days, there were only a couple of streaming options, such as Netflix and Prime Video. Today, every company associated with cable TV is bringing one of their own into the market. The potential of all these streaming services is huge and they have taken a fair market share from cable TV. The reason is simple. People love convenience and streaming services tick all the boxes.
The second challenge cable TV is facing is growing competition. Fiber optic internet and TV service are the new cool. There is a common trend among consumers to bundle internet and TV to get a single bill every month. With fiber optics, they get reliability and seamless connectivity without compromising on ultra-fast speeds. Therefore, more and more people are switching to fiber. The only problem fiber has is its installation. Fiber optics technology is relatively expensive than the coaxial cable network and it incurs a huge infrastructure cost.
Consequently, we have to wait for some time for fiber technology to expand beyond the boundaries of states. With these growing challenges, cable TV has to thrive in the market. The cable TV providers have to make sure that they retain their customer base and attract more and more consumers.
There are two ways to achieve that. The first method is quite simple. Give people what they need the most. Streaming services fail because they cannot give consumers a variety of local and sports channels. Therefore, people have to keep cable TV. No one wants to miss the live action from the world of NFL or NBA. Secondly, the cord-cutting movement started because cable TV bills were skyrocketing day by day.
You cannot assume that people will pay more than $120 a month yet stay loyal to cable TV. The strategy has to change. You have to make cable TV affordable for all end users. For example, Cox Communications has changed its strategy to attract more and more customers. They have a package in every price range. Cox cable prices range from $30 and go as high as $100. This gives consumers a lot of options and they can choose the plan according to their budget.
Lastly, cable TV should adopt all the modern technologies streaming services offer. People want non-stop entertainment and you can give them that through cable TV too. For example, modern-day cable providers offer a huge library of movies and TV shows on-demand. You can stream them anytime without having to pay anything extra.
Let’s get back to our original question. Will cable TV become cheaper with the competition?
The answer to this is simple. They have to. This is crucial for their survival. They face fierce competition from the streaming industry which lets consumers pay for only what they want to watch. Cutting prices is not just enough, cable TV has to reciprocate to the challenges equally. Streaming services are changing the way through which people get entertainment. It is not about traditional entertainment anymore.
Secondly, another reason why people are preferring streaming over cable TV is because of its business model. A large part of income on cable TV is generated through advertisements. However, for an average consumer, these adverts are quite frustrating. Streaming services don’t rely on adverts for their revenue generation. You can stream a movie for 2 hours without seeing a single advertisement. This makes the consumer more inclined towards the service.
Lastly, streaming services are more interactive. With the integration of modern-day technology, you can easily navigate between movies and TV shows. This convenience is quite sought after these days. As a result, cable TV has to be more interactive too.
Consequently, with the growing competition, cable TV has to be more affordable. Not everyone can pay over $120 every month for basic cable and internet. In addition to being more affordable, it has to be more convenient and interactive like popular streaming platforms. The competition is likely to increase in the coming areas. Therefore, the necessary actions should be taken initially.