Will 2010 Be The Year Cable & Satellite TV Customers Cut Their Service?

Posted by on Apr 30, 2010 | 28 Comments

A recent, convincing article at CNN Money details why cable and satellite TV customers may be cutting their services during 2010. With the average cable & satellite TV user paying an average of $71 a month, a recent survey suggests that consumers may be either cutting back to basic services or terminating their service all together. This brings up the question as to why this may happen during 2010 and beyond.

CNN Money states:

A cutting-the-cord trend has been the subject of speculation for some time, as networks have increasingly made television programming available for free on the Internet. But a combination of other factors, including a growing number of battles between cable companies and networks, soaring Internet video viewings and an increase in connected TVs and devices, suggest the trend is finally upon us.

“Admittedly, this is a small phenomenon now, but a number or recent transactions and new items point to a shift in consumer thinking,” said Vince Vittore, analyst at Yankee Group and author of the study.

What caught my eye was this statement ‘a shift in consumer thinking’.  I find myself as one of those consumers who is shifting gears and trying to decide which way to flop. The new Blu-ray players now come with Netflix built in to stream video to your TV. I do not currently stream to my TV, just to my computer, and I subscribe to Netflix on their $9 a month plan.. My thinking is once I buy a Blu-ray with Netflix streaming I may wish to trim down on my Dishnetwork subscription, which I currently have.

But I am not sure if going totally to the Internet is the way to go. What do you think and what do you use?

Comments welcome.

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  • http://wp3.lockergnome.com/nocturnalslacker/ V. T. Eric Layton

    I haven’t had cable in my house since 1999, Ron. I used to come home from work and fall asleep for a couple hours in front of the TV after dinner every night. One day I figured that it was costing me about $1.82/day to nap in front of the tube for those two hours. I canceled the cable the following day. I’ve been getting my TV from the air (standard broadcast) ever since. I don’t even miss it.

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  • Larry

    Not sure this is only about what is available on the Internet. When you spend $60-$70 per month and, out of over 200 channels, you have a problem finding something you want to watch that you haven’t already seen 3-4 times you begin to wonder why you are spending all that money.

    Then there are a few channels where they seem to be testing just how many commercials they can pack into a show before people stop watching. :)

  • Dan

    No!, Of course, since I don’t watch TV at all I don’t have cable, satellite, DirecTV or even plain old broadcast TV. In fact, I don’t even have a TV. [Well to be perfectly honest - I have an old 20" analog TV hooked up to the VCR and DVD player.] It’s amazing how much money I don’t have to spend by not subscribing to any number of TV services and I don’t have to listen to the interminable sound bites and hype about all manufactured stars and “reality” shows. I stick to reading (newspapers (2 per day), books (I have 3 going right now ranging from fantasy to, history to theology), magazines (~30 per month), multiple websites, etc.). And not spending ~$100.00 per month for something I don’t watch means I can save the money for new hardware, software, stereo equipment and the like.

  • ItsMichaelNotMike

    Well maybe I can be an indicator of trends since whatever I do eventually everyone follows. OK, stop laughing, but here is what I mean:

    1. Way back, and I do mean way way back, I bought an answering machine. It was cutting edge at the time and people marveled that I had some device that would answer my phone. It was a Phone-Mate, the big one.

    As you know, answering machines were once the rage and must-have electronic.

    Eventually I went to voice mail and ditched the answering machine.

    2. The next big thing was getting a cell phone, back when they were the size of a car battery, portable, but HUGE.

    Of course, everyone got cell phones, eventually, but I was using them when they were still a novelty more than anything else, a rich man’s toy.

    3. Then came the internet. Back in 1994 I said it was going to be a big deal so I got 95 domain names and put up my websites.

    You know how that went.

    4. Then I got rid of my land line at home in 1999. I went totally wireless at home when people would ask “Are you nuts.”

    Now I believe more people have wireless than landlines at home.

    5. That brings us to 2010. I am cutting back on my TV because I really don’t need all those channels. If one watches just a few, why does he or she need 264 or 234 channels (respectively Direct TV and Comcast channel offerings on mid tier packages).

    Just like the answering machine and land line, I now look where I have DUPLICATION and cut out those services that are not needed.

    I am working toward setting up my T-Mobile data connection to provide ALL the services I need at home. For example, with the new superphones coming out I will be able to get HD input and output from the phone. The phone will have an HDMI output port!

    And this is really cool, Netflix told me that they are working on having its instant viewing work on smartphones. This means I can watch movies on my phone, and with the new superphones shoot the video on to my home flat panel TVs!

    So really I am going one step further than this article, I am working toward even cutting the cord to a home Net connection.

    With T-Mobile and others going to super high speed data connections the day is coming where the phone can stream or download FASTER than many home internet connections can do.

    A super fast connection caused me to wonder “Why do I need DUPLICATE Net connections, one at home and one on the phone. I can toss the home Net connection just like I did the answering machine and land line!”

    I envision the day when we leave the house and take our digital connection with us, on the phone. When we get back home we connect the phone to a dock that feeds a connection to the outside world (Net) to all our home’s TVs and computer terminals.

    So while this article talks about getting rid of home TV, I contemplate getting rid of BOTH the home’s hard wired (or satellite) TV AND Net connection.

    A first step in that direction is cutting back on my cable TV service. I suspect the cable TV companies can see that coming because when I call to disconnect they keep lowering the price for TV while increasing the number of channels I get (including HBO).

    HBO? That brings to mind what cable providers are doing to keep subscribers. They bring out specialized shows and programming that cannot be had on other venues. So that is something to consider. If you want to see that HBO mini series, you are gonna have to keep the service, plain and simple.

    And you can’t argue with the concept of having 234 channels to watch. For example, my girlfriend likes watching the Biography and National Geographic channels. You can’t get that programming on the Net, that’s for sure.

    So maybe that’s how cable companies will remain viable, offer so much that people get hooked on this, that or whatever, to where they are forever chained to having cable TV.

  • Scott

    I cut the cable cord 3 years ago due to the increasing costs.
    I use my Wii to stream Netflix and shows I used to watch on cable stations like SciFi and Fox News I can watch online.

  • JoanthanPDX

    I cut the cord in 2007 and haven’t looked back. There’s just too much to do to sit and watch TV and so far, everything I want to see is on the web.

    It might be different if the cable companies weren’t being paid by both the advertisers AND the consumers. That means that we are basically paying to watch commercials (fully 1/3 of each broadcast hour is taken up by commercials.)

    But beyond that, the content has become so diluted and inane. Whole channels devoted to the irrelevant. News channels, rather than “reporting” the news, feel it’s also their mission to tell us what it means as well, instead of leaving that up to other programs.

    Everything is dumbed-down and over-simplified. Comedy, instead of using wit and nuance, depends on profanity and references to bodily function to get a laugh.

    I certainly don’t miss cable/dish television.

  • MmeMoxie

    While, I do understand the new trend, I honestly don’t think that streaming from the Internet on either your PC or TV is the complete answer, either.

    I ‘cut the cord’ with Cable back in Oct. 1998. I became a DirecTV customer and have never looked back. I have 2 daughters that use Dish Network and I still prefer my DirecTV (more channels and variety). I like watching all the shows that involve history, both ancient and modern, good reality shows like Deadliest Catch, Medical Diagnosis, so on and so forth. I am not sure if, my favorite type of programs are on the Internet to stream to my PC. Plus, I am the Original Couch Potato, been watching TV since 1948 and have a really, really hard habit to eliminate. }:o)

    Now having said that, I LOVE Hulu! Yes, I will watch some older shows like Babylon 5, Star Treks and the like on Hulu. What I am faced with now, is that it looks like Hulu is planning on offering subscriber service. That puts me in a precarious position…Do I really want to spend MORE on entertainment?!

    This is a dilemma for me, how about you?

  • http://thirdworldcounty.us David

    We have basic cable, because basic cable+cable internet is (strangely) marginally less expensive than cable internet alone, from our provider.

    Had Dish for TV at one time. Hated it. Would NOT use satellite-dependent internet access unless I had no other option. *heh* Our local cable tech guy can’t get internet access either with his own company or even via any of the local telcos’ (three POTS companies serve this county) dialup or DSL, so he is bound to a satellite/dish dependent system. His assessment is that it’s just marginally better than nothing, and that’s about what I’d assess dish net access.

    For TV? I need/want so little from TV that anything more than basic service is wasted on me. Like my 10mbs download speed 0.75mbs upload speed (less) on cable, though.

  • Dick

    I cut off all forms of broadcast TV 6 years ago. For the same reasons as everyone else. Never came even close to missing it. I have a 32″ flat panel, wide screen, LCD TV and an old analog 27″ with a VCR and DVD built in. Probably don’t have 100 hours on either one. Use them to watch videos I’m interested in and a few DVD’s. I have rabbit ears on the analog because we live in Florida and each June – November it is exciting to watch when hurricanes are coming to destroy your home and maybe even you.

    I agree with JoanthanPDX entirely. Nothing worth watching at all. I used to love ZDTV especially the “Screen Savers” with Leo and Kate. But then they were bought out because they weren’t making “Enough” money. Sigh….. TV is such a waste.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Hi Dick,
      What is your take on Crist? Does he stand a chance as a independent ?

  • MtnWolfGrl

    I am going to cut back on the cable service as it will double in price for my package which is limited basic plus some digital channels including Encore. I subscribed to the digital package years ago strictly for Encore, because there are no commercials, and I like movies. The reason Comcast doubled the price is (according to a customer rep) that it is digital. Well so what! It isn’t any better than it was with analog. Comcast offered a deal for 40 more channels for six months for a $5 increase/month. While the price increase took affect immediately, the 40 channels failed to materialize. In August, they are going to XFINITY, whatever that is. For the little that I watch the TV, limited basic seems to fine. The savings will be over $20/month, which doesn’t seem like much, but when compared to an expenditure of $80/month for lousy TV, it looks much better.

    I don’t have the option of high speed internet where I live. I have dial-up, and that won’t change. Every time I contact AT&T, they offer DSL. The problem is the lines are so old here, that when it rains, there is no phone service. I would be paying for something that I wouldn’t always be able to use, and I have a problem with that. When I want faster internet service, I drive 10 miles to town to the local coop and use their free WiFi. (It is part of the membership.)

    I read newspapers, magazines, books, and research a lot on the internet plus I have my house and property to look after so TV has become a waste of time.

    While things may be changing rapidly in urban areas, that is simply not the case in this rural area where I live.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Hi MtnWolfGrl,
      I hear you. I lived in Jamestown, CA., and it took forever before we got DSL. Cable was also a joke.
      They still do not have HD according to my old neighbors. I have a 10G internet connection via cable now where I live and I love it.
      Best regards, Ron

  • Bobengel

    Having a 42-inch LCD TV and cable box with DVR and HD. I can’t imagine watching TV programs only on my computer. The quality of TV sets are becoming even better with LED back lighting and other improvements. Maybe someday, I will connect my computer to the cable box so I can watch Internet streaming and other video sources but I can’t see discontinuing cable completely unless I switch to satellite TV service and then only if the savings are substantial and the quality is equivalent or better.

  • Dick

    Hey Ron,
    Christ has more problems than are commonly known. I don’t believe he will even be close.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Thanks Dick.

  • http://None Kirk Peel

    I agree remember when pay TV was going to be commercial free? Ok so you don’t remember the 60′s. What are you using for internet service? I stopped our cell phone until I decide what to do. Cox has nice internet speed and bundled the TV, Phone, and internet are not that much more. We are retired stay at home folks that do not use text and have trouble reading or typing on any phone.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      I am with Suddenlink.

  • Cliffystones

    I dumped cable in 1983. Survived on broadcast until we moved to the fringe suburbs. Then in the late 90′s, the late afternoon atmospheric ionization got so bad that I couldn’t watch VHF high-band channels. We were in Simi Valley California, and getting “skip” channels from Dallas-Fort Worth! I checked with the FCC when I saw the station call letters. I kept missing my Star Trek TNG :( .

    So we got hooked up to Direct TV in ’99. We haven’t had any problems like some folks, but we don’t get any special treatment being long-term customers either. Unless you consider price increases special.

    But Netflix is the greatest! 9 bucks a month for pretty much any DVD title you can think of. And last summer I bought a Roku box for $100. That is in our den, and my son’s XBox 360 is in the basement with Netflix as well.

    With Netflix streaming I have rediscovered a lot of old movies and TV shows from when I was a kid and introduced these to my kids as well. My son loves the original Mission Impossible, Dragnet and The Rockford Files to name a few. He and I are currently on the second season of The X-Files (we watch it in the basement as it’s a little rough for my 10yo girl).

    My only disagreement with other commentators is the assertion that there is nothing worth watching anymore. Two of my absolute favorite shows are Firefly and Jericho, from 2003 and 2007 respectively. You just have to do a bit of “mining” to find the “gems”.

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Cliffystone,
      Thanks for the info. and for sharing your thoughts with us.

  • Wendy Haylett

    Dumped DISH 2 weeks ago. I got my first Roku box in January, quickly followed by a 2nd for the bedroom. I have the $9 Netflix package for streaming.

    I saw the possibilities within weeks – gee I could dump DishTV. The OTA portion for local was easy for me – I live within 8 miles of the transmitters and an indoor antenna works great. I had 2 things I wanted in my perfect world: MSNBC access (which I almost have from PodTV and MediaFly through Roku with the few bugs) and DVR capabilities.

    I solved the DVR issue by setting up Windows Media Center with a PC tuner and buying an an Xbox 360 for use as a Media Center Extender. I also have PlayOn/TubeCore TubeCentric which allows me to watch Hulu on TV through the XBox.

    I finished the “infrastructure” part of the set-up by running network and coax cables to the necessary computers with tuners and TVs that need OTA signal.

    The money I’m saving from monthly Dish fees made it possible for me to buy a 40″ Samsung HDTV, replacing a 13+ year-old Sony Trinitron.

    The other major plus in addition to $ saved is discovery of content. It’s too easy to veg in front of the TV and let you mind turn to mush. This way you can still veg, but watch higher quality programming with limited or no commercials.

    It’s the best!

    Wendy

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Hi Wendy,
      Thanks for stopping by. I have been thinking about a Roku, but I am now leaning towards a Blu-ray player
      that streams Netflix. Hopefully by the holidays both will be lower in price. :-)

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  • ME

    The problem is, “there is no free lunch”! Sooner or later, there will be cost associated with downloading TV input. I am a Directv subscriber, and have been for a decade. Now that OTA signals are availble in High Def, that is currently free, but has anyone noticed that commercials are taking more and more time out of a 1 hour show/ As a young man, ususally a half hour TV show had one or maybe 2, 2 minute commercials. I’ve used a stopwatch to watch a typical 1 hour show and it’s 8 minutes of show followed by 6 minutes of commercial followed by 8 minutes and then 6 minutes, again and again and again. There’s a cost for everything, and I just don’t want to waste my time converting to internet TV that’s free now, but won’t be free much longer.

  • Cliffystones

    Me,

    You are absolutely correct. The older TV shows on Netflix streaming have 46 to 48 minutes of content. Newer TV shows (i.e. Jericho) are only 43-45 minutes long.

    Wendy,

    I never thought I’d see the phrase “perfect world” and MSNBC in the same sentence :) .

  • David

    I got rid of all of my TV services last year, so no need to change in 2010! ;) Fox and NBC cancel my favorite shows anyway, so why bother paying to watch their darn networks? I download every single tv show I like without exception. I watch the Daily Show and The Colbert Report online. I also watch South Park online.

    And Cox’s tv service is unreliable. At 4 am every single morning they “update” and you cannot watch recorded TV shows on your DVR. There show search is clunky as hell! So good riddance to TV Cable. Yay, Hulu! They have paid sponsorship, but their commercials last 30 seconds max!