In recent news, Spectrum and Disney have sparked a major conflict that could have significant implications for the future of cable TV. Spectrum recently declared that the cable TV model is no longer effective and needs to be revamped.
This clash comes at a critical juncture for cable TV, as subscriber numbers continue to plummet. Inscape, a reputable source, revealed in a recent report that the viewership share of cable TV and satellite on VIZIO TVs has dwindled to a mere 37.1%, a significant drop from 46.9% during the same period the previous year. Streaming services now account for 53.8% of all TV time, while video games hold a 5.4% share, and over-the-air (OTA) TV follows closely with 3.7%.
The rapid decline of cable TV is apparent as cable TV companies such as Comcast and Spectrum lost over 2,748,000 TV subscribers in just the first half of 2023. Additionally, the anticipated shift of most cord cutters towards live TV streaming services seems to be falling short, with popular services like Hulu + Live TV and Fubo also experiencing a loss of 509,000 subscribers during this period.
Given the circumstances, Comcast and Spectrum, the two largest cable TV companies, are pursuing contrasting strategies to combat the demise of cable TV.
Comcast is fighting back by embracing cord cutting and launching several streaming services. Peacock, introduced a few years ago, offers on-demand access to a vast library of movies and TV shows. To cater to the demand for more affordable live TV services, Comcast has recently introduced NOW TV. This service provides 40+ live channels and a complimentary subscription to Peacock for a modest fee of $20 per month. NOW TV focuses on non-sports enthusiasts seeking budget-friendly entertainment, while Peacock caters to cord cutters desiring extensive on-demand content from NBCUniversal.
On the other hand, Spectrum is adopting a different approach in its fight against the demise of cable TV. Spectrum boldly proclaims that the cable TV model is flawed and urgently requires change. To address this issue, Spectrum is demanding greater flexibility in its packages from Disney and is also urging Disney to include its streaming services for free within its cable bundles. Furthermore, Spectrum is requesting Disney’s permission to offer bundles with fewer live channels. In the event that Disney does not comply, Spectrum is prepared to sever ties with cable TV altogether and explore the possibility of selling bundles of streaming services exclusively to its internet customers.
Various other cable TV providers are also pushing back against cord cutting in different ways. Many have come to terms with the reality that live TV is no longer a profitable venture and have consequently chosen to discontinue their TV services, instead opting to sell YouTube TV.
For numerous small and mid-sized cable TV companies, the pursuit of cable TV is no longer a lucrative endeavor and therefore unworthy of investment. Instead, they are redirecting their focus towards providing internet services.
In conclusion, cable TV companies are currently taking divergent approaches to combatting cord cutting and the impending death of cable TV. The unanswered question remains: which approach will prove successful in battling cord cutting, and which will ultimately fail?
