What are the reasons for the elimination of cable television?

The way people watch television has changed dramatically. Online video and Internet TV streaming services are gradually replacing traditional cable television and are no longer news. Since last year, various phenomena have shown that this kind of online video is entering a climax or tipping point for the replacement or elimination of cable television.

A few days ago, Recode, a US technology news website, pointed out that the widespread adoption of home broadband and the proliferation of video services, coupled with an increase in the number of screens in homes, have caused CATV to enter the climax of being eliminated.

Not long ago, the fifth quarter of "Game of Thrones" began broadcasting. There were 8 million people watching in the United States. However, many of these people watched through online video and DVR video.


Nowadays, there are more and more options for watching TV shows. Consumers are shifting from sitting on the sofa and waiting for the TV channel to go to the Internet at a convenient time. The appreciation of television content is being determined by more user-side factors such as convenient time, location and screen devices.

Comcast, with 22 million subscribers, is the largest cable company in the United States. However, at the recent financial report conference, Comcast announced that for the first time in history, its broadband subscribers have surpassed cable TV subscribers, which means that more broadband users no longer use cable television.

In the first quarter of this year, Comcast added 410,000 broadband subscribers. As a comparison, it only added 8,000 cable subscribers (the number of users in the cable industry has dropped). In the face of changes in consumer spending behavior, the cable TV industry will face transformation to survive.

In observing the substitution of network video for cable television, the user difference between broadband users and cable subscribers is a dimension. The other dimension is the income of their respective businesses. According to the Comcast report, revenue from television services in the first quarter was 5.3 billion U.S. dollars, while revenue from broadband services also increased to 3 billion U.S. dollars.

With the shift of users' eyes, the related expenses and revenues will naturally change.

In the wave of US households switching to online video, cable TV is not the only injured person. According to Leichtman, a US market research company, the top 13 pay TV providers in the United States (including cable television, satellite television, and telecommunications companies) lost a total of 125,000 TV subscribers in 2014.

Of course, traditional television services have been operating for many years. Currently, there are as many as 95 million users in the United States, so these services will be slowly replaced instead of disappearing overnight.

What are the reasons behind the acceleration of cable television?

First, Internet broadband services are becoming more and more popular. In the United States in 2000, only half of adults had access to the Internet, and only about 3% of American households had broadband. Today, according to data from the Consumer Electronics Association of the United States, 80% of American households have broadband, and only 1% of American households continue to use backward dial-up Internet access.

Secondly, there are more and more service providers for online video and Internet TV streaming media, which have expanded the choice of consumers.

At this year's Consumer Electronics Show, US satellite television company Dish released an internet television service, which can watch 20 channels for $20 a month. It is no longer necessary to pay for channels that he does not want to see.

In addition to third-party service providers, TV stations such as HBO and CBS have also announced that they will broadcast channels and programs directly over the Internet and will no longer require users to qualify for pay-TV subscriptions.

After the digitization and networking of television programs, consumers can order and order at will. The viewing behavior has been personalized, and it is no longer required to face a thousand channels of bundled subscriptions.

According to statistics, 40% of homes in the United States have become paid subscribers to online video and Internet TV. In addition, last year, the number of homes with connected TVs also doubled. Obviously, watching video and TV shows through the Internet is entering the golden era.

The popularity of various screens and hardware has also accelerated the replacement of cable television. Today in the home, the number of screens exceeds that of the past. According to statistics, each American home has 5.6 screens (watching equipment). The number of screens in American families is as many as 900 million. Obviously, with so many display devices and diversified consumers, they expect to get video and television content services that are different from the traditional ones.

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