Netflix & Hulu Are Doing Well at Killing-off Cable TV Providers

Posted on April 18, 2014 10:00 AM by Rob Williams

Believe it or not, services like Netflix and Hulu are¬†affecting the number of cable subscribers out there. Surprising? Nah – of course it isn’t, and I’m not going to hide the fact that I’m a wee bit pleased at the fact. It’s not so much that I adore Netflix and Hulu; it’s more the fact that cable companies have charged ridiculous prices for their services for far too long.

In the latest reports from Experian Marketing Services, it was found that 6.5% of all US households are cord-cutters – that is, they don’t subscribe to a cable or satellite service. When the household is occupied by those aged 18 – 34, there’s a 12.4% chance that there’s no cable subscription. And finally, 18.1% of homes that have either Netflix or Hulu do not have a cable subscription. That’s an increase of 5.4% over 2010.

Netflix Homepage

It’s clear that the cable-cutting trend is continuing an acceleration that started about five-years-ago, and the way things are going, it wouldn’t be surprising to see these numbers increase in acceleration even further from this point on. By 2019, I picture¬†the number of cable-free homes nearing 40%, unless the cable companies wise-up. If Netflix and Hulu cost $8 per month a piece, and offer a ton of on-demand content, it gets pretty hard to justify shelling out $80 each month for content that’s not on demand, has more commercials than online services, and give you a ton of stuff you don’t want.

What will help seal the deal is if sporting channels begin going online. I don’t currently have cable, but if I did, sports would be the only reason. There’s a severe lack of online streaming for that at the moment, and the stuff that is there, ironically enough, requires a cable subscription to access.

I admit I’m being very opinionated here, but I personally can’t wait for the death of cable to get here. The faster it happens, the sooner we all get faster Internet with fewer restrictions. When everyone will rely on Internet for such content exclusively, ISPs will have to act, else those small guys that offer better deals and fewer restrictions will reign supreme.

The next ten years are going to be very interesting.

  • Tom Roeder

    Agreed – However, net neutrality MUST happen, although it appears to be dying. People will argue that the internet providers should be able to do whatever they want,
    being that they are a company, and it is their equipment, their service.
    I completely disagree, seeing as how Comcast is my ONLY choice for
    broadband. That makes them a monopoly and therefore, they suck and I hate
    them. They are not providing a product; they are providing a service, a
    pipeline. They need to leave the pipe open to everything, as we are
    paying a premium for it. Unfortunately I see this all going wrong – but
    we shall see.

    • Rob Williams

      Monopolies are bad, plain and simple. At this point, the Internet isn’t a luxury, it’s a necessity, and therefore companies shouldn’t be allowed to offer such crap service and packages. Nonetheless, if they do, the small guys will thank their lucky stars, since they almost always offer more attractive packages (even if they have to feed through the big guys).

  • Tom Roeder

    Yes, as far as I am concerned, broadband should be right there with utilities like phone, water and electrical. They have the Government making them play nice, so it should be for the cable companies, IMHO.

    • xOptix78

      Wait, wait, wait. The government is making the water companies play nice? I’m moving to your neck of the woods, Tom! Our municipal water company sends out a whole heapin’ of butt hurt packed into an unassuming envelope every 6 months and there’s nothing nice about it, but that’s another rant all together.

      This is just another case of adapt or die.

      We’re considering killing off our cable because we hardly watch it, and when something is on, it’s usually a show for my 5 year old. There’s just no value in having cable TV now. We have a Netflix subscription, and are toying with the idea of getting a US proxy and a Hulu account, all of which would total far less than what we’re paying now for a bunch of crappy stations with stuff that doesn’t interest us.

      Add in the fact that Netflix is creating original programming now, and sprinkle on higher and higher torrent usage, and the cable companies are going to be in tough once the older, less tech savvy generation is gone.

  • Guest

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  • zacharyt1122

    I’ve been cable free since I moved out on my own. I’m a big enough gamer that I don’t watch much TV. That said, I do enjoy me some Game of Thrones and Walking Dead. Problem with Hulu and Netflix is the big TV shows don’t have streaming and I have to wait for the DVD. Its not too bad, since I can watch a whle season at a time, but its difficult to keep away from spoilers. Unfortunately, the cable guys own the internet down here and prices are very high for acceptable speeds. I pay for 10mbps only because it is the best trade off for price and performance as I can stream in HD without a problem, but if my girlfriend is watching a show I can’t download a game or stream myself without problems.

    • Rob Williams

      “but its difficult to keep away from spoilers”

      Haha, no doubt the biggest problem from not having cable. I don’t watch much TV either. Sports is the real killer for me. No great online options for that. NFL charges $60 a month… I might as well get cable at that point. And that only takes care of one sport.

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