Posted by: crudbasher | November 18, 2010

More customers drop cable TV; is Internet or cost to blame? – USATODAY.com

Two related stories with a moral.  Cable companies are seeing more and more people dropping cable service.  I think people are getting tired of paying a large cable bill for only the few channels they actually watch.  For example, I have a whole bunch of spanish language channels.  I don’t speak spanish so why am I paying for them?

The second story is Hulu Plus is now out of testing and they lowered the price already by $2 to $7.99.  It was more expensive than Netflix and you got vastly less content.  That’s hard to sell.  Now it’s about the same price as Netflix.

So what is the moral of the story?  It’s hard to sell an aggregated content package, especially if a lot of parts are not valued.  Sort of like an undergrad degree?

As I have been saying, I think higher education will go the same way.  The perception is that it is largely overpriced and people will want to customize the experience and content.  Sort of like a mix tape.  Oh that’s a cool idea actually!  How about the equivelent of a mix tape for school?  Basically people can come up with their own lines of study and courses then can share them around.

Heh heh I like that idea!

Here is a related blog posting on the Xplanation.

As always, I invite comments.  Do you think Cable is worth what you are paying for it?

  • More people cutting the cord

    tags: technology cable disruptive

    • TV subscribers are ditching their cable companies at an ever faster rate the past few months, and many aren’t signing up with a satellite or phone competitor.
    • A few weeks ago, the CEO of phone company Verizon Communications (VZ) likened cord-cutting to what started happening to local phone companies five or six years ago, when people started giving up landlines to rely solely on their cellphones.
    • “The price of cable TV has risen to the point where it’s simply not affordable to lots of lower-income homes. And right now there are an awful lot of lower-income homes,” Sanford Bernstein analyst Craig Moffett says. “The evidence suggests that what we’re seeing is a poverty problem rather than a technology phenomenon.”
    • Meanwhile, Netflix’s (NFLX) streaming movie service has become so popular that it is now the largest source of U.S. Internet traffic during peak evening hours, according to Sandvine, a Canadian company that supplies traffic-management equipment to Internet service providers.
    • Six companies create the content that consumes 85% of U.S. viewing hours, Moffett said. “Until they get on board, the train’s not leaving the station.”
    • Did we say Hulu Plus officially launched earlier this month? We meant it’s officially launching today. The company announced Wednesday that it is bringing Hulu Plus out of preview for really real this time, and for $7.99 per month—a $2 price drop.
    • Hulu is undoubtedly trying to spur subscriptions after much Internet angst over the $9.99 per month price during the preview period.

Posted from Diigo. The rest of my favorite links are here.

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Responses

  1. We pay $13 for basic cable (but only because bundled w/ internet makes our internet cheaper) and use a combination of a Mac mini media server running plex and playstation3 with netflix. Haven’t missed cable yet!


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