Millions ditch cable for Netflix and antennas
The Internet continues to change how people access and consume information.
This fast-paced evolution has forced numerous businesses to change their strategies in order to keep up with the competition.
Perhaps no industry has faced the effects of the Internet more than print media, with some of the longest running newspapers either being completely wound up, or moved to the web.
After print media, could cable TV be next on the chopping block?
Well, a recent report authored by the Convergence Consulting Group reveals that approximately 1 million homes in the U.S. discontinued their cable television subscription in 2010 - instead opting for antennas and online movie streaming services such as Netflix.
This represents a huge spike from 2009, when 550,000 homes made the big switch. The report expects the numbers to be lower in 2011 when only 520,000 homes will drop cable TV subscription.
However, the decreasing cable subscription rate does not seem to be affecting the revenues of satellite, cable and telecommunications TV operators, as revenues were up 6% in 2010 - peaking at a cool $89 billion.
Nevertheless, operators are trying to find ways of keeping tabs on movie streaming, online TV and downloads. According to the report, one thing that is likely to happen is a sustained onslaught by cable companies in an effort to curb free online viewing.
Operators are now experimenting with various approaches to limit such activity, including forcing online viewers to watch adverts, creating a longer delay between episodes, or simply making users pay extra for streaming.