Saturday, March 30, 2013

Ad Banned As Promoting Cord Cutting

For consumers tired of paying the high costs of cable TV, broadcast networks can still be received over the air.  While homes used to get these networks with large antennas attached to their roofs, the transition to digital means that a much smaller antenna can do the same thing.  Today's generation has gotten so comfortable with cable that they may forget that these devices still exist.  The ad below is one example of how to save money by getting a digital antenna.

"Over-the-air antenna maker Antennas Direct recently wanted to buy some air time on Charter‘s cable channels to explain how TV viewers can access these channels without a pay TV subscription."  But Charter refused to take this media buy.  In addition to connecting an antenna to get local broadcast signals, customers in NY can buy broadband access to local broadcast through Aereo's streaming platform. For consumers not interested in top cable networks like AMC, Discovery, ESPN, Food Network, HGTV, Nickelodeon and others, an antenna offers a truly inexpensive, basic TV service.  And this is the worry of cable operators like Charter and others, that acknowledging these alternatives will hasten cord cutting.

But while cable operators are at risk of losing cable subscribers, they are also a key driver for broadband to the home.  Unless consumers are willing to pay for wireless access only, a broadband connection from cable or telecom company is the ideal way to get access to the web into the home.  And until these companies can build differentiation into their broadband platform, consumers will view it almost like a utility and see the product like a commodity.  And that will mean that the lowest price will win the consumers' business. 

No comments:

Post a Comment