A series of unsettling developments have been accumulating in the cable industry, fueling concerns that the industry’s days may be numbered. For instance, basic subscribers have been declining over the last decade. In 2001, there were 66.9 million basic cable subscribers in the US. This number has now dropped to 56.4 million as of 2012, representing a nearly 16% decline.
However, it is not just the number of subscribers that is worrying the industry. Instead, it is the changing viewing habits of consumers that are becoming evident. With new devices and multi-screen viewing options now available, households are now supplementing or even abandoning their fixed TV sets to access content. Traditional cable TV is no longer the only option, with more and more households turning to the internet for their content needs.
Digital display is another key factor that is disrupting the cable TV industry. With high-quality digital displays now available, households can now catch up on their favorite shows on their devices, including smartphones and tablets, without being confined to their TV set. This has also forced the traditional cable TV industry to evolve, with players launching their own digital display services.
However, cable TV players are not out of the game yet. For one, there is still a large segment of the population that relies on traditional cable TV for their viewing needs. Additionally, cable TV providers are evolving and adapting to new trends, launching their own OTT (over-the-top) services and enabling mobile viewing options.
In conclusion, it is clear that digital disruption is forcing the cable TV industry to adapt or perish. New technologies and changing consumer habits are forcing traditional players to evolve and adapt to new realities. However, there is still a lot of potential for traditional cable TV players to leverage their strengths and stay relevant in the digital era.