The cable television industry may in a rocky place, but when we read articles like “3 Reasons Cable TV Companies Will Go Out Of Business,” it really gets our goat.
Let’s not forget that the cable television industry is one of the major pillars of the U.S. economy. So cable operators shouldn’t worry all that much. Make no mistake about it: There is a bright future ahead for cable television.
In the above-mentioned article, the author makes three valid points: Streaming services are more accessible, affordable and adaptable than pay TV services.
But we can flip this around and say that cable operators can learn from these points. And if operators do so, customers may begin to look at pay TV in a different light. Let’s not forget that many customers are unhappy with streaming services, and are looking to plug back in the cords they have cut.
Here are three things every cable operator should consider:
Improve accessibility: As the author points out, “the days of having to wait for your favorite show to come out are almost over.” And this is true. It’s hard to argue that consumers like to binge watch television shows. YouTube and Netflix have forever changed the way we consume content. But cable operators can embrace this new style of content delivery, and offer platforms that offer streaming content alongside traditional channels. After all, not all content—like news and sports — can be streamed. Consumers want variety!
Become more adaptable: “One of the biggest problems with the conventional cable companies is that given future market changes, they will be unable to pivot,” the article explains. “They are and have been stuck in their ways for years now and are not able to adapt to changes in consumer tastes and preferences.” This is a very good point. Now what should operators do? Embrace new technologies. Make content available on mobile platforms. Evolve with the times to avoid becoming extinct.
Lower pricing: “Streaming services can compete on margins that cable companies cannot play with,” explains the article. “For dollars on the month, users can sign up to get on demand content streamed directly to any device. And often times, there is no contract associated with the purchase.” Another valid point, but as we maintain here at GLDS, streaming content services are oftentimes more expensive than cable television. By lowering cable prices and offering more bundled services, cable operators can become more attractive to consumers who are fed up with having to pay for multiple, disparate OTT services.
So take heart, cable operators: The cable industry won’t be going out of business any time soon. Times are changing, and operators must be innovative and flexible. But by making these adjustments, it’s possible to stay in the game.
What are your thoughts on the future of the cable industry?