Is Cable’s Future at Jeopardy?

In the last few years, I’ve noticed my television watching has changed. I no longer watch shows on an actual television. I either watch on my computer or tablet via Netflix, Hulu or on “the go” via my cable provider. With today’s demanding schedule, I have little to no time to watch a show when it actually airs. I prefer this method as it is convenient. Many of my friends feel similarly. Plus, Hulu and Netflix offer great pricing compared to the actual cable bill.

Apparently millions of consumers feel the same way that I do. In 2013, 1.8 million people unsubscribed from cable television. Now, this could be a combination of willing and unwilling customers. However, it is a figure that should be analyzed.

So what is at jeopardy? Ad dollars of course! In 2014, cable TV providers received $12 billion on advertisements aired on TV dramas in 2013. In addition, these gigantic broadcasting companies collected $6 billion advertising dollars from news and sitcom programs. If Netflix and Hulu are taking away customers, they will also take advertisers with them. And this could affect the bottom line for cable providers. Commercial advertisements are how millions of companies communicate to consumers on a daily basis. This could lead to new and more creative methods of advertising; like the smart shirt I discussed in my last post.

But then again, I prefer to watch shows on Netflix and Hulu due to the commercial free segments in most cases. So the advertisers following suit on these mediums could lead to the development of another medium. And with today’s need for new, it is only a matter of time before another competitor enters the ring.

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4 thoughts on “Is Cable’s Future at Jeopardy?

  1. snamerow February 3, 2015 / 12:33 am

    I’d be lying if I said I didn’t marathon watch Netflix before bed occasionally. I do still have a TV company, but I like to keep both. It’s an amazing concept to be able to watch without any commercials, but also has the potential to hurt advertising. Some companies rely heavily on their TV commercials, which they aren’t getting anymore with Netflix.

    Like

    • kerris310 February 16, 2015 / 2:30 am

      Yes, the impact of having commercial-free content is something to ponder. Especially as a consumer and business standpoint.

      Like

  2. thines12 February 3, 2015 / 3:36 pm

    With what seems like everyone’s time in high demand these days, people are turning away from televisionin real-time. With Netflix, Hulu and TiVo, they can watch what they want, when they want and with no commericals. Is it possible that advertisiers will start to move into this arena and pay for commericals to air? We already see ads at the beginning of YouTube videos when there used to be none. Or perhaps marketers will come up with a new form of media advterising to hit us with. Whatever happens in the future, we can always be certain to more creative forms of advertising are going to explode.

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  3. kerris310 February 16, 2015 / 2:33 am

    Great point on ads appearing on YouTube. And you can’y skip through the ones that appear during the video. It will be interesting to see what advertisers develop to accommodate new channels.

    Like

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