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Netflix is winning the war against cable TV

March 12th, 2015 at 10:45 PM
Netflix vs. Cable TV

Throughout 2014, Netflix continued to steal customers from cable providers nationwide. The latest Nielsen report shows that over 40% of homes now have access to a subscription-based video on-demand service, such as Netflix, Hulu Plus or Amazon Prime Instant Video. That’s up from 36% in 2013.

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As Huffington Post notes, this isn’t the only sign that cable is slipping — in the third quarter of 2014, SNL Kagan reported that 10.5 million American homes had access to broadband but didn’t subscribe to a cable provider. On the other hand, cable subscriptions are steadily drying up and TV ratings are falling with them.

More families are learning to live without cable, and as premium channels begin to spinoff their own a la carte services, there will be even fewer reasons to sign a contract.

“With continued and accelerating fragmentation, the risks and rewards are potentially high, and the ability to stake a claim in the expanding industry pie is central to companies’ growth,” says Nielsen SVP Dounia Turrill.

“The landscape has created new competitors—akin to a modern-day gold rush—for traditional video and audio, with the emergence of a relatively small number of digital leaders, all of whom are looking not just to compete, but to stake a claim and prosper in that space.”

Cord cutting hasn’t swept the nation quite yet, but the tools are in place for everyone to step away from their contracts once and for all in the coming months and years.

Jacob started covering video games and technology in college as a hobby, but it quickly became clear to him that this was what he wanted to do for a living. He currently resides in New York writing for BGR. His previously published work can be found on TechHive, VentureBeat and Game Rant.




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