The rising popularity of Netflix represents a two-pronged threat to the cable industry. On one hand, cable companies need to keep subscribers who pay upwards of $100/month happy enough to keep them from cutting the cord completely. Additionally, cable companies need to figure out ways to bring new subscribers into the fold.
On the first front, the cable industry is doing alright. While the cord cutting phenomenon is very real, its impact, at least not yet, isn’t as severe as initially believed. As we reported earlier in the week, the rate of cable subscribers cutting the cord has noticeably slowed down as of late.
On the second front, well, this is where the true challenge lies.