Why do Cable Companies Still Exist?

Source: reviews

It is a fact that we are observing a significant drop in cable TV subscriptions every year. Cord-cutting has gained much impetus. It is a trend that seems to continue and not stop. No doubt, traditional TV seems to be fading because of the less expensive streaming services, including Netflix, Hulu, etc.

Yet, cable company tycoons like Spectrum TV or Cox TV continue to exist because their users generally seem happy with the reliable and high-quality services they receive. More often, they do not feel the need to switch to another provider or get on the streaming service bandwagon. Apart from that, there are some reasons involved because of which users do not quit cable TV, and it continues to survive amidst the storm of online streaming services.

1. Bundled Offers

Source: Business News Daily

One of the main reasons Americans stick to their cable TV subscriptions and avoid cutting the cord is that it is often bundled with their internet plan. Some providers offer some of the most exceptional bundle offers with impressive discounts.

It is why the users keep the cable TV subscription and the internet as the price overall seems much less. Most of the cable companies would throw additional cost for all the extras that they might have in store for you. People can access many channels at the same time at a reasonable cost. It is one of the most significant advantages of cable companies and why they still exist.

Cable companies are not obsolete and would exist because most of them offer cable internet services and cable TV services, which more or less acts as a bait against cutting the cord. Nowadays, the internet is an essential requirement for people across the globe. If any cable company is offering such a service, it is quite beneficial to access TV channels and internet programs. In this way, one is accessing a lot of things in a single package.

It will not be wrong to say that the cable companies are not cable companies; in fact, they are broadband companies now. So they make good use of this strong area to resist the cord-cutting trend.

2. Live Broadcasts

Source: Medium

Another reason why users might avoid cutting the cord is that they want to watch live sports that are often not available on streaming services. The transmission of live broadcast is one of the areas where cable TV has the edge over the streaming services. Such live broadcast content is usually not accessible via online streaming services.

Streaming services are expensive, and therefore, not every person can afford it. There are many applications where one can watch live shows, tournaments, and much more. But due to its expense, watching cable is a way more convenient option. The companies offer all types of channels with live news, events, stage shows, etc. If you are also looking for an inexpensive way to access these programs, stick to your cable.

3. DVR Service

Source: arstechnica

Some cable TV subscribers also enjoy using DVR service. Many cable TV providers give you a DVR as part of the cable TV plan that you opt for. It allows you to record your favorite shows and be able to watch them later whenever you want. The DVR capability is a catch for some subscribers that compels them to stick to their cable TV subscription.

Many streaming services allow you to watch shows whenever you want. There is no scope of downloading any movie or an episode. On the other hand, you need to spend money on getting the subscription of these services. In case of cable, you can access all channels and watch whatever you want later by downloading the program’s streaming.

4. Reluctant to New Technology

Source: MarTech Series

A significant fraction of people who do not consider cutting the cord is not tech-savvy and reluctant to use new technology to watch TV. They want to stick to the traditional cable TV for fulfilling their entertainment needs.

They enjoy the conventional method of using a remote and scrolling through a wide range of channels to look out for the kind of content they are in the mood to watch. Having a television is a common thing in everyone’s place. When any person switches on the device, he keeps checking the channels to watch what’s going on. After going through ultimately, he comes back to the favorite program and watches it with happiness.

In fact, surfing through all the channels randomly on its own is a good source of entertainment for them. It is something they would not be able to enjoy with online streaming services, which they feel is not their cup of tea.

5. Cost-Effectiveness

Source: arstechnica

Those cable TV subscribers who have already availed affordable and budget-friendly cable TV plans do not feel the need to cut the cord and switch to an online streaming service. The reason is that they seem to be happy with the lower cost they are paying for their cable TV plan currently. They feel that they are getting just enough or even more for the cost they are paying.

Indeed, one can get a lot of entertaining stuff in a single device. Well, old is gold, and that’s why people love to watch old movies, songs, series, etc. It may not be possible in other streaming services. Therefore, the cable is cost-effective, and one of the significant reasons these cable companies still exist, and nowadays, people also prefer them.

The Bottom Line

As mentioned earlier, the reasons justify the fact that cable companies will continue to exist, and consumers still love traditional TV. Though there is no denying that online streaming services have changed the TV watching habits and experience of many people, it cannot be regarded as the death of cable TV.

Cable companies have been witnessing losses with the rising trend of online streaming services. Still, because of the broadband services, cost-effective bundle offer, DVR service, and transmission of live broadcasts, sports, news, etc., cable TV does not seem to get obsolete.