More and more people are cutting cable to save money in the tight economy today. Many are turning to Internet-based TV services, such as Netflix, Hulu, and Amazon Instant Video. There are many ways to access apps like these now; through a smart TV, streaming devices, tablets, computers, etc. These Internet-TV services allow viewers to pay only for what they select to watch, versus paying for a plethora of unwatched channels with a cable subscription.
Nathanson Research senior analyst, Michael Nathanson, says that ratings for broadcast networks were down 5.1 percent in August, while cable ratings sank 9.8 percent. However, it is important to point out that sports lovers, for the most part, are going to have to remain loyal to a cable subscription. Most, if not all, Internet-TV sports apps require a subscription account name and password. Either cable companies have to offer more competitive prices to compete with these services, or they will have to adapt.
Internet-TV also opens up new segments and new audiences for advertisers to reach. A new style of advertising is on the rise. Instead of bombarding viewers with multiple ads between shows, advertisers are utilizing shorter and more interactive ads via the internet. Some Internet-based TV services even let you choose which ad you would prefer to watch. Overall, the advertisers have more targeted messages than before. This also means more expensive advertising.
What do you think? Will Internet-TV replace your cable subscription?
