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5 Theories that Predict the Death of Cable TV

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Whether you have this argument with a layman or a tech savvy person, the theory about the death of Cable TV is gaining momentum of late. Many eminent persons in the Industry are also predicting about the demise of cable TV. Their arguments – dare I say flawed, shed light on the fact that with the evolution of services like Netflix, YouTube and many more live tv sites, the days of Cable TV are definitely numbered.

However, as suggested by the tone of this article, I’m of the view that Cable TV would still hold a definite part in our future. Its usage might be reduced, however, it will remain there and continue to be a major source of entertainment for our households.

Below mentioned are the 5 theories that Predict about the death of Cable TV – and why they’re wrong in my opinion …


Cord Cutting is the beginning of End for Cable TV

An argument that is gaining weight by the day – many people claim that the rise of online video streams, inflated prices of cable and the upheaval of the millennial will wreck the subscriptions of Cable TV. People also strengthen the aforementioned argument with numbers which state that the subscription of US TV has gone down by 5-Million.

My take: In my opinion, the aforementioned numbers which suggest about the demise of the Cable TV cannot be viewed in Isolation. In fact, these losses are more associated with the housing market than that of the customer growing bored of Cable TV.

When people drop their households, cable TV cannot avoid but to lose one more subscription. Thus, it seems fairly rational to believe that if fewer houses are occupied, fewer folks will pay their monthly subscription of Cable TV.


Netflix will blow Cable TV away

At the start of last summer, Netflix secured another victory medal under its belt as it bested Comcast to become the largest pledged service in the United States. However, while the Netflix owners were still busy posing for the Camera with their wide grins, its stock came down somewhere close to 70%.

One big reason that sent the Media Giant to the ground was its decision to split its DVD and streaming products into two different parts. Thus, customers had to pay for both these services separately which inflated the prices significantly for them.

Another reason for this crash was related to the understanding of local markets about the business of Netflix. They understood – rightly in my opinion, that Netflix is a part of Big Media and is not alienated from it. Thus, Netflix had to register everything that it displays on its site.

Also, Comcast replied to the surpassing of Netflix with a vengeance by launching its own Xfinity Streampix Service. This service offers all the products like Netflix and is, therefore, a direct competitor of Netflix.


Thus, with all the aforementioned things making life difficult for Netflix, its CEO Reed Hastings has conceded that it is becoming more difficult than ever for Netflix to obtain licenses from Cable Networks. However, here’s the catch: he said that if future “Netflix would look more alike like another cable Network”

Thus, for all the doom mongers who were signaling the end of the road for Cable TV, this statement by the CEO of Netflix should be an eye opener.

YouTube will destroy Cable

YouTube might be a Social Magnate. However, it cannot compete with the economic perspective of TV. According to a recent study, for every 28-Billion Videos that are streamed on YouTube per week, only 10% generate income.

This, when compared with the revenue generation tactic of TV – which airs 12-14, 30-second commercials per 42-44 minutes, Youtube is miles behind Cable TV.

Thus, with a 24:1 economic lead over YouTube, TV is already miles ahead of other competitors in the race of revenue generation.


Watching Videos Online will destroy Cable

According to a recent statistic from Facebook, more than 2-Billion Videos were watched daily at the end of 2015. Thus, it is safe to say that Online Videos have the ability to serve a major headache to the Big TV. Because, if all the videos could be watched online, who will subscribe to Cable TV?

The answer to this question is given in the shape of HBO GO Service. You could watch everything that is being shown on HBO (be it True Blood or Entourage) as long as you are paying for the Cable subscription fee.

This, the authentication system that is mentioned above has the ability to keep Big TV afloat in this digital age.

Tablets to pillage Cable Subscriptions

In the last few years, the sales of iPad have been on an ascending trajectory. According to a study, no other consumer electronic platform has been sold as much as iPad in the last few years. And with the sales of iPad, the consumption of online videos is bound to increase.

However, if you were thinking that all those videos which you watch on your iPad are away from the grasp of TV, let me correct you as the TV Business is already one step ahead of its counterparts. It has monetized the Videos through right holders like Hulu and Hulu Plus.


Now, have you ever wondered why Hulu receives so much content on its portal? Well, the reason is that Hulu is also a small portion of the big Media Company.

Thus, it doesn’t matter whether you’re viewing on TV, Tablet or online, as TV subscribers have done enough to get your name on their subscription list.


When you take into account all the aforementioned explanations, one thing that seems crystal clear is that Cable TV is here for long enough to provide the average household with doses of entertainment, information and sports.

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