Lessons From The Cable Industry For Higher Education

Let me lay out a scenario.

A young adult who has grown up on what they want, when they want it content via internet, decides that paying a lot for a bundle of content they can’t choose isnt’ good for them. Alternatives are beginning to emerge where you can choose a subset of this content for much cheaper. While it isn’t a full featured as the regular package, it’s enough for the young adult. A whole generation of college age people might decide to do something different…

So, am I talking about cable TV or college degrees? Both have similar models. You buy a package. The problem here is prospective students are growing up with more choices. They are having a harder time accepting the ever increasing cost of both cable TV and college. There are now ways to learn online for low cost or even free. Yes, you won’t be getting a degree from Harvard, but you can still learn. It’s not as good a college, but is it good enough?

(cc) Hugo90

Is this scenario likely to happen? Well disruption of established system happens slowly, unless a catalyst in introduced. In the early 1970s American car companies were the dominant players in the US market. Japanese car makers were gradually making better products but it took the oil shocks of the late 70s to really kick the change into high gear.

The current economic climate is acting as a catalyst for many changes, some good and some bad. Will young people change their college habits?

If only they were sending us a sign of some kind.

(cc) Steve Rhodes

 

Keep in mind, every freshman who shows up has made a choice to do it. Nothing says they have to make the same choice next semester.

 

• The children are our future, and they’re not paying for TV — Online Video News

  • A weak economy is putting pressure on the pay TV industry, as it struggles to get new users to sign up for cable, IPTV and satellite services. But the short-term issue around the affordability of cable is hiding a bigger trend of young people who are choosing not to pay for TV.
  • While there’s still some debate over how many users are ditching pay TV in lieu of cheaper online options, Ergen said on Monday’s earnings call that there’s a bigger macro trend developing, with young people choosing to forgo pay TV subscriptions altogether:

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

Advertisements