Click to Skip Ad
Closing in...

The rise of Netflix could cost cable companies $1 billion next year

Netflix vs Cable

Cord-cutting feels like it’s been the “next big thing” for a decade now, but according to one new report, 2017 is going to be THE YEAR. We promise it’s true this time.

Management consultancy firm cg42 has published a report into the state of the cable industry, and it makes for bleak reading if you’re a Comcast exec.

DON’T MISS: All the best new features in iOS 10 Messages

Cg42 estimates that 800,000 current cable subscribers will cancel their packages in the next year, which will lead to around a billion dollars in lost revenue for cable companies. Ouch. The math looks much better for consumers though, who save an average of $104 per month by switching to subscription services.

The landscape for cord-cutters has become far better over the last year or two. Internet access is finally starting to speed up (although cable companies are responding by introducing bandwidth caps). Netflix and Amazon Prime both have strong selections of older stuff, as well as new offerings of original content that rival traditional TV channels.

The big holdout continues to be sports, but even that is fading. MLB and the NHL both offer online viewing services of some kind, and even Twitter is trying to get into the live sports game. That’s not mentioning the rising world of live sports piracy, which is proving difficult to shut down in the two-hour window where it matters the most.

And, of course, there’s the hardware. New streaming sticks have user-friendly features like the ability to cast from your phone and watch YouTube, while cable boxes (and, to be honest, most every Smart TV) are a user-interface mess designed by the same people who do customer service phone menus.