Analysts say there’s no question that a growing number of customers are switching to Web-based services like Netflix and Hulu.
Add cable and satellite TV to the list of old media that are getting hammered by the Internet. The nation’s six largest cable and satellite providers lost almost 600,000 subscribers in the second quarter of this year, the largest quarterly decline in history, according to Bloomberg News.
Some of the loss can be explained by the rotten economy, as households cancel cable and satellite service to save on their monthly bills.
But the tipping point can come with stunning speed. The newspaper business had its best year ever in 2005, raking in $49 billion. Only five years later, half of that money had vanished, and newspapers everywhere responded with drastic cutbacks.
The inflexibility of the old channel model is it’s downfall. Too much dog-food, too little steak. People want to watch what they want to watch, WHEN THEY WANT TO … And you have to pay for all the crap in the bargain.
Die cable model, quickly.