Great article in the LA Times this week that notes that the internet is not the cause of cable cord cutting. It is competition among cable, satellite, and telco providers that is hurting cable company's subscription growth, noting that "both satellite and telco video distribution services saw growth, while cable fell by almost 2%." Whether the cause of this migration is lower pricing, better service, unique content, or something else should all be considered, yet with the economy in turmoil, lower pricing is most likely the underlying motivation.
The article warns that this migration may still lead to true cord cutting. "The Nielsen study warns that younger Americans are spending an increasing amount of time watching content online." It is why cable operators are pushing to extend the reach and availability of their channel line-up online for mobile enjoyment. As consumers like having content follow them, this accessibility generates both new acquisition as well as retention benefits. Still, TV today remains the dominate means to view long form video content. And with better and bigger HDTV screens and the rise of 3D, a video subscription, whether from cable, telco, or satellite, it is the best means to enjoy it.
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