The rapid of acceleration of technology has left dated services in the dust. Often times, innovation can make once common things go extinct.
We see this phenomenon all of the time. A great example of this is with radio stations, that saw a rapid decline as listeners pivoted to television networks to get their information and entertainment.
Consumers will always trend towards the latest and greatest, leaving incumbents who failed to develop in the dust. Which industry will be next?
For many of the same reasons as radio stations, cable companies will be next to go. In the next few years, experts expect a continual decline of traditional television viewers. The future is coming, and cable tv companies may not be a part of it.
Perhaps the biggest reason that we will see this change is because of the rise of on-demand, streaming services like Netflix, VIDGO, and Hulu.
Here are 3 things that streaming services offer that will make the cable companies go out of business.
The fundamental difference between streaming services and traditional television viewing is the incredible increase in accessibility you get with being able to stream from anywhere. The days of having to wait for your favorite show to come out are almost over.
With innovative streaming platforms and services, such as Vidgo, you can watch live TV, including locals, TV shows, and movies anytime and anywhere.
With just a few clicks or taps, users can keep up with all of their favorite shows and movies while gaining access to exclusive series.
Consumers have always wanted to explore a diversity of shows and channels, but have always had to depend on the cable channels' schedules. Streaming services bring on demand, "whenever you want to watch it" material that is easier to consume and often more enjoyable to watch.
Streaming services can compete on margins that cable companies cannot play with. 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.
This flexibility and affordability will attract a lot of viewers away from the cable companies and towards these streaming services.
The streaming package is also often all in one, with less hidden fees than the cable guys. The cable companies tend to hide different services and price jumps under their offerings, which leave you to pay much more than you thought you were going to.
Being able to stream a variety of shows, all from one dashboard, is what makes streaming services unbeatable. Never before have you been able to affordably gain access to a multitude of offerings, let alone be able to watch it on any device. Streaming will inevitably get to a point where they will beat the cable companies on a cost war alone.
One of the biggest problems with the conventional cable companies is that given future market changes, they will be unable to pivot. 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.
A great example of this has been the switch from television screens to mobile, where online streaming is completely dominating the space. The cable companies lacked the foresight and flexibility to make the jump from the big screen to the touch screen. In doing so, they completely lost a whole generation of Gen Z consumers who favor watching content on their mobile devices.
Streaming services, on the other hand, were built on top of mobile platforms. Specifically, they were primarily built to be used on computers, iPads, and iPhones. This strategic decision was, of course in hindsight, the right one as the future of consumer consumption is moving to mobile.
The teams that will win this space are those that can key in on the three consumer tastes of accessibility, affordability, and adaptability. If cable companies cannot compete on these three terms, they will inevitably go out of business.