Netflix, Inc. (NFLX) Is Stealing Cable TV’s Thunder

Updated on

Cable TV, once the only viable option for many to receive their video content is under assault from a number of alternatives that, for many, make a lot more sense than bills of over $100 each month. While many who are interested in on-demand viewing still use their DVR’s, more and more are doing away with this option altogether.

Netflix, Inc. (NFLX) Is Stealing Cable TV's Thunder

On demand services have a large appeal for many who dislike both programming a DVR and having to clear its memory all the time. And unlike, say Netflix, Inc. (NASDAQ:NFLX), DVR’s still require you to skip over the commercials.

Canadian Netflix, Inc. (NASDAQ:NFLX) subscriber Curtis Khan is like 33 million others who are more than happy to shell out $8 monthly for on-demand, commercial-free content.

“I prefer viewing TV shows back-to-back so I can finish a season quickly,” says Khan.

“While the movie and TV show selection isn’t as good as (in) the U.S., it’s good enough — and you can’t beat the price,” he continues.

Cable TV Providers Are Losing Revenue To Netflix:

There is no question that cable TV providers are losing revenue to Netflix, Inc. (NASDAQ:NFLX) and other services but Michelle Warren, president of Toronto’s MW Research & Consulting which specializes in the Canadian IT industry, sees how providers will make up some of this growing gap, at least in Canada.

“If they can offer faster, more consistent Internet connections at a raised price, they can recoup the lost revenues from their cable/TV business.”

“We expect increased competition over the next year — including services offered by Rogers, Videotron, Astral Media and Bell getting into the game.”

It’s not just Netflix, Inc. (NASDAQ:NFLX) that is threatening cable TV. CinemaNow has 15,000 titles, including “next day” TV shows. Customers also have access to the hottest cable TV series from HBO, AMC and FX Network, including Game of Thrones, Homeland, Walking Dead, Boardwalk Empire, True Blood and Sons of Anarchy. Though compared to Netflix this remains an expensive option.

YouTube now enjoys over 1 billion monthly users and they provide a ridiculous amount of content. “Illegal” streaming sites also offer video, often within an hour of the show airing. While we won’t list these services, a simple search of “watch _____ online” returns hundreds of Google Inc (NASDAQ:GOOG) results.

Cable TV may never be the same as the world becomes more connected and bills often reach well over $100 a month.


Leave a Comment