On Sunday, April 14, 2019 on the front page of the Washington Post was an article titled “Cord Cutters’ dreams dashed as streaming sector splinters.” For those who didn’t read this, we thought we would summarize it because we get a lot of calls from existing and prospective clients to “cut the cord” on their cable TV and go straight to streaming via the Internet, to save money.
Essentially, the article talks about the fact that because streaming is becoming so popular, companies owning the movies that are offered via streaming, are starting to splinter into additional streaming companies. For example, Disney will start their own streaming service for $6.99 a month, taking their movies away from other services that now offer them. So, while you may have been able to watch Start Wars before on other streaming services, now you will have to purchase Disney’s service.
There is a huge proliferation of streaming services, i.e. NetFlix, Hulu, Vue, Sling, Amazon Prime, HBO Now, DirectNow and more. This list will continue and each will offer their own shows, some TV shows, and some movies. So, essentially, while consumers are spending less on cable, they are now spending more on Internet. Some people are paying more now for streaming services than for cable TV. Netflix recently increased their service by 18%, partly to fund original shows, whose costs have risen due to higher production costs.
While the article states that a study by Ovum analyst Tony Gunnarsson cited at the recent NAB trade show noted that the majority of consumers will subscribe to only 2.25 streaming services, there are still companies, such as Disney, entering the market.
Something that the article doesn’t go into is the need for stronger residential networking to handle streaming. Cutting cable can also mean that your home’s infrastructure may not be set up to get the full speed of the Internet, which will result in problems watching streaming TV.
So, before you cut the cord, do a complete analysis of what the costs are for 100% streaming. What channels will you want to subscribe to, what will your Internet cost be should you need to increase the amount of broadband coming to your house, and can your internal infrastructure handle all the streaming and if not, what is the cost to get you up to speed. Then compare this to your current cable bill to make a decision.