Cable companies now under competitive threat, beginning to hemorrhage customers

The threat to cable companies that I mentioned in today's "Internet and Journalism" is now in full effect. A new study just released by eMarketer projects that US cable companies will 33 million customers this year, up from a loss of 24.9 million a year ago. Some thoughts below
Data transfer speeds are driving the change
As I suggested in the previous post, all of this change is driven by data transfer speeds.

In the past, customers who consumed video content bought pre-packaged content en masse via VHS cassette and, later, DVD purchases. And they consumed live content according to the schedule of their content providers, sometimes with the assistance of analogue VHS cassettes and, later, DVRs.

The result was that the motion-picture industry enjoyed an additional high margin revenu...


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