Still, everything has been controlled by a few major players and a cable industry that determined what packages subscribers would have to take in order to satisfy all household viewers. Revenue has continued to be from two major sources – subscription fees for the cable companies and advertising for the TV networks.
Consumers Now Drive the Market
Television is morphing into something entirely different because innovators have listened to consumers and responded. Television appliances themselves began to change. The image of the family TV in the living room has given way to screens all over the house, on “smart” TV’s, PC’s, laptops, tablets, and phones. And every device is now a combination of TV viewing and Internet access. It was only natural that this convergence would dismantle traditional television access, programming, and consumer cost. In fact, the cable box is becoming an anachronism. It only exists so that cable companies can continue to be gatekeepers of what consumers get to view, based upon the packages they buy, and the agreements they have with broadcasting companies. Neither of these things benefit the consumer, and that has become apparent to new generation who will not tolerate the cost of cable packages. They want access to those channels and shows that interest them, and they do not want to pay for those they don’t want.
The New Economy of Television
While TV has traditionally built on advertising and subscription payments. Some channels, like HBO, survive on subscription fees alone. Cable companies also pay major channels for carrying their programming. Cable companies had the leverage. Not so much anymore. When Netflix, HBO Now, and others decided to bypass cable and go directly to the consumer, the transformation began. Consumers get what they want and individual providers get to keep all of the money.
Enter Live Streaming and Cloud Technology – the Biggest Disruptors
Is cable dead? Not yet. But cable providers’ current business models are, and it’s a win for consumers, as these former monopolies figure out how to compete with the new kids on the block.
