Cutting Cable: Companies Losing Customers

CBS News ^ | February 8, 2009

[Zakeet]

Porter McConnell gave up on pay TV last summer after noticing that monthly rates kept creeping up.

Now with no satellite or cable TV, she watches her trusty old TV set with an antenna or she goes online to catch her favorite programs. Once in a while, she buys shows from Apple Inc.'s iTunes service. McConnell also upped her subscription to Netflix Inc.'s movies-by-mail service so she gets two DVDs at a time instead of one, for $15 a month.

"Part of it is, I've got to economize," said the 30-year-old Washington, D.C., resident who works at a nonprofit.

McConnell is the kind of consumer who makes cable and satellite TV operators lose sleep. While a weak economy invariably makes people pinch pennies, this is the first time that viewing shows online has become a viable competitor to pay TV, making cutting the cord easier.

Cable operators are starting to notice. Glenn Britt, chief executive of Time Warner Cable Inc., voiced his concern Wednesday in a quarterly earnings discussion with analysts.

"We are starting to see the beginning of cord cutting," he said. "People will choose not to buy subscription video if they can get the same stuff for free."

[Zakeet]

TV providers are alarmed because a flood of TV shows and movies have become available online, and the video quality has gotten better.

[Da Coyote]

Hmmm, but one still have to have a high bandwidth conduit to the computer. DSL sucks (when it works), leaving either satellite links (expensive) or - cable.

One can still get DVDs by mail, I guess......

[anton]

“We are starting to see the beginning of cord cutting,” he said. “People will choose not to buy subscription video if they can get the same stuff for free.”

Now that’s the remark of a Ted Turner inspired genius.

[familyop]

Prices on a few other things have gone up again, lately, too. Some people get a little scared during times like these and do the supply and demand thing a little backwards.

[KoRn]

"DSL sucks"

Mine doesn't. It's as fast as I need it to be for anything and is very reliable.

[Fresh Wind]

I occasionally have to watch “24” on line, and have found that Fox has it available WITHOUT COMMERCIALS, and very good quality.

[puppypusher]

I don't know about that,but I have dsl connected to a router and run three computers on the net at the same time and have very good speed on it. I have even watched a couple of movies in HD Format right off the internet and they were excellent.Not one burp.

[MarkL]

What really sucks is a lack of competition, due to government fiat.

I have to have HS Internet for work. I haven’t been able to use cellular broadband, due to spotty coverage in my area, but more to the point, the latency involved (also a problem with satellite) plays hell with my VPN connection. And I’m too far from my CO for DSL.

So I’m stuck with cable... It wouldn’t be so bad if I had a choice: My aunt had a choice of 3 carriers, and because of that, she was paying $49 a month for 1st tier cable, HS Internet and phone service. In the city where I live, Time Warner has the monopoly, so I pay $72 a month for 1st tier cable and HS Internet. And I’ve been waiting YEARS to finally get my cable buried in the back yard. They did finally put it up along the top of the fence after the 3rd time it was cut while mowing the yard. Gotta love that service.

Mark

[Man50D]

I’m considering doing the same thing after the NCAA Men’s and Women’s basketball tournaments. First I have to watch my UConn Men’s and Women’s teams win their NCAA tournaments!

[seatrout]

Same here. Beats the heck out of dial up!

[IamConservative]

http://www.roku.com/default.aspx

If you are happy with just TV you can get through an antenna and have broadband, the little box above and $8.99/month will get you unlimited movies.

[REPANDPROUDOFIT]

I’m sure there is a bailout on the horizon for the cable companies. Just imagine their distress over decreasing revenues! Gasp! (sarc off)

[thackney]

DSL sucks

DSL varies a lot by location and provider. I had great DSL service in Alaska.

[metmom]

While a weak economy invariably makes people pinch pennies, this is the first time that viewing shows online has become a viable competitor to pay TV, making cutting the cord easier.

What do you do when there's no extras to cut?

[jenk]

Low Budget Ping

[metmom]

"We are starting to see the beginning of cord cutting," he said. "People will choose not to buy subscription video if they can get the same stuff for free."

Now look for legislation to put an end to the free stuff.

[Richard Kimball]

Donner party.

[newfreep]

My DSL service (AT&T) has been great without hickups for years. Also watch hi-def TV shows online without a problem. “Life On Mars” is one of the better new TV shows and looks great online - even with full screen display.

[lafroste]

We cut off DISH and Cable a few months ago. We discovered that we could find what we want online for free (except for the HS internet access of course).

I downloaded Star Trek “The Doomsday Machine” as an experiment. Not only was the quality great, but someone re-did the special effects, they were outstanding as compared to the original. The Enterprise tumbling end over end, really cool phasers, a much more animated mutant ice cream cone from h$ll. Who did this? Anyone know?

[Overtaxed]

CBS streams the NCAA men’s basketball tournament online for free (not sure about women’s.)