According to statistics, the number of households in the U.S. that pay for cable television services has been steadily decreasing for about a decade. In 2013, there were 100 million such households. By contrast, this number is expected to be as low as 65 million in 2023. So is cable TV dying? All signs seem to point in that direction. But why is that so? What is making consumers turn away from traditional television — and what are they watching instead?
Is Cable TV Even Dead?
Although there is an obvious downward trend, cable television isn’t dead just yet. For starters, there is a significant portion of the older population that finds it difficult to adapt to new digital trends. In fact, according to Insider Intelligence, baby boomers are the most faithful cable TV audience of all age groups.
Another thing keeping cable TV alive is live event broadcasting. Although there are plenty of online solutions for live streaming events, most people still seem to prefer traditional linear TV for such occasions. For instance, according to NFL, almost 90% of viewers watched the 2022 Super Bowl on TV.
Cable TV Statistics Speak Volumes
All that being said, there is no doubt that cable television is losing its appeal. According to Statista, the number of U.S. households that subscribe to cable TV went from around 47% in 2019 to 42% in 2022. All things considered, this trend is not stopping anytime soon. According to Insider Intelligence, in 2026, households that don’t subscribe to any pay-TV service will exceed the number of households that do by around 26 million.
Why Is Cable TV Dying, Anyways?
So cable TV is dying, there is no question about it. But what exactly brought about its demise? The answer lies in several different things, each one of them doing its part. So let’s take a look at some of the biggest factors that triggered the downfall of pay-TV services.
1. The Rise of On-Demand Content
The rise in the popularity of VOD has been the catalyst for the change in consumer preferences. On-demand technology has allowed viewers to enjoy their favorite content whenever they want to. In other words, they don’t have to plan their days around the TV schedule.
What’s more, it has allowed us to move away from linear TV advertising and enjoy videos with less or no interruption by video ads. This is not to say that ads are not present in the online environment, but they are often skippable and much shorter than a typical TV commercial break. What’s more, with advanced targeting options, specifically behavioral and contextual targeting, video ads are more relevant and less annoying.
2. Increasing Competition from Streaming Service Providers
On-demand streaming services don’t exactly take up a small portion of the market. For the past decade, Netflix has been expanding its global digital reach, going from 35 million subscribers in 2013 to over 220 million in 2022.
This has inspired many other broadcasters and publishers to launch their own OTT streaming services. Today, Disney+, Hulu, and HBO Max are a staple in many households. They have all been competing fiercely among themselves, leaving little room for cable TV to remain relevant at all.
3. There Are More Affordable Alternatives
Another advantage that OTT has over traditional television is the price. Depending on the provider, cable TV services can cost anywhere from tens to hundreds of dollars. By contrast, subscribing to SVOD streaming services often costs as little as a couple of bucks. What’s more, there are many AVOD services out there that offer content free of charge in exchange for serving video ads.
Business Insider’s correspondent Graham Flannagan recounts his experience switching from cable TV to online services:
“The whole point of this is to save money. We were paying $210 a month. Now, with the combination of Spectrum’s internet service and DirecTV Now, we’re going to pay $120 a month. That’s going to save us over $1,000 a year.”
4. Streaming Services Are More Accessible and Convenient
We have already established that VOD streaming services allow us to watch content whenever we want. But that isn’t the only perk they have in terms of accessibility and convenience. OTT apps have made it possible for users to access content from an array of devices, including OTT boxes, CTV, gaming consoles, mobile phones, and so on. By contrast, with cable, users are tied to their television sets.
5. Consumer Behavior Is Changing
Of course, streaming services wouldn’t be this successful if consumers didn’t respond to them well. We’re leading increasingly fast-paced lifestyles, and OTT broadcasting simply matches our habits better. Many viewers don’t have the time to sit in front of the TV during their workday. Rather, they consume content on the go, and that’s much easier to do with an OTT device (like your phone) in your pocket.
What Lies in the Future of Cable TV?
The inevitable death of cable TV doesn’t mean your business has to go down with it. There are certain things broadcasters can do to avoid their downfall. For example, the unbundling of content, i.e., allowing users to only pay for the channels they actually watch, could be a step in the right direction.
Still, the best course of action for any broadcaster is to start providing an online linear TV solution and adjust their monetization model. FAST is one of the possible routes they can take. Adapting to new trends is the first rule to running a successful long-term business, and broadcasting is no exception.
Is It Even Worth Starting a Cable TV Service Anymore?
Despite there being strategic steps broadcasters can take to save their businesses, starting a cable TV service from scratch simply doesn’t pay off anymore. Not only are fewer people willing to pay for cable, but advertisers are no longer as interested in purchasing TV ad real estate. OTT advertising is simply way more effective and affordable.
What Alternatives to Cable TV Should You Consider?
So we’ve established that starting a cable TV service is not a good idea. But what other options are available for distributing and monetizing your video content? If you ask us, partnering with a reliable OTT platform and launching an online streaming service is a much surer way to succeed in the industry.
As you already know, with an OTT service, you’ll be able to reach a much wider and more faithful audience. What’s more, OTT monetization encompasses much more than just selling ad inventory, so you will have many options for monetizing video content.
Get Into the OTT and CTV Markets With Brid.TV
Are you looking to launch an OTT and CTV service? Then Brid.TV is the platform for you. Whether you want to build an app for iOS, Android, or the web, we’ve got you covered. On top of this, we provide unlimited video hosting, management, content protection, and ad-based monetization solutions. In other words, with the Brid.TV online video platform, you’ll get everything you need in one place. Get in touch with us and start your OTT journey today.
FAQ
1. What is cable TV?
Cable TV is a method of delivering video content to consumers using coaxial and fiber-optic cables. The term is also sometimes used to encompass satellite television, although the two methods are quite different.
2. When did cable TV come out?
Cable TV first came out in 1948 in the United States. Its original purpose was to make the television signal better in more remote areas.
3. What’s the future of cable TV?
The future of cable TV is uncertain, as more people are cutting the cord and turning to online services, such as OTT streaming.
4. Is building a cable TV service worth it?
Building a cable TV service is not worth it. If you want to distribute and monetize video content, building an OTT streaming service is a much better option.
