Thursday, December 5, 2013

The Death of Cable TVs

By Alex Hamm

          The days of having to buy cable to watch TV are now coming to an end. These days cable providers can get away with charging massive amounts for a product they have to work very little to produce, but this will not last for very long. Since there foundation in 2002 the tech company Roku has envolved into a real threat for these cable giants. Roku recently released there latest product, the Roku 3, which has support for 750 stations including 94 TV and movie chanels! The best part is that to own a Roku you only have to pay one flat rate, no more subscriptions!

          For those who do not know what Roku is, the concept is really quite simple. Roku provides you with a little computer in a box that you plug into one of your TV inputs, basicaly you replace your existing cable box with this Roku system. Once you have the Roku plugged into your computer you can control it with the provided remote or even an app from your smartphone! The days of losing the TV remote are soon going to be a thing of the past!

http://wwwimg.roku.com/roku-3-chart-pics_0.jpg
An image of the new Roku 3 system with remote control
                                     

          Now one of the biggest concerns people have with dropping cable is that they will lose live coverage of sports and news. To some degree these people are correct but there are ways to get around this problem. For one thing to get local stations (local news, NBC, CBS, etc) all you need to do is go to Wal-Mart and buy a $50 antena! And no, this is not the same as the antenna your grandma had back in the 1950's, all of these stations are broadcasting these channels in HD for free! All Time Warner Cable or whoever your provider is doing is licensing and re-broadcasting the signal, you are literally paying hundreds of dollars for something you can get for free! As far as sports are concerned, a lot of what happens can be viewed online but Roku is also working hard to bring live TV to their systems. Already Roku users can watch MLB TV and more major sports networks will soon be on the way!

          Now the concept of internet TV (in this case through a Roku) is not something brand new. Cable company's have been dealing with these Roku's and similar products for years but their popularity has really caught on in the last couple of years. As shown in the chart below the amount of new subscribers to cable providers is falling and falling fast. The only way these cable company's can try to keep up is to raise their rates which will cause even more people to make the switch to internet TV. This is a vicious cycle for cable providers and in my opinion it will eventually be the death, or at least major restructuring, of them all.

http://static1.businessinsider.com/image/5273e0c7eab8ea4c775941a3-538/chart-of-the-day-
A chart showing the decline of new cable TV subscribers

          In conclusion the cable TV landscape is quickly changing and the days of everyone needing cable are coming to an end. Although there will always be some people that want cable, I predict that in the next few years Roku and products like it will dominate the market. This really is the death of cable TV!


Magid, Larry. "Review of Roku 3: Could It Kill Cable and Satellite TV?." Forbes. Forbes Magazine, 1 Apr. 2013. Web. 3 Dec. 2013.

"CHART OF THE DAY: The Death Of Cable TV." Business Insider. N.p., n.d. Web. 3 Dec. 2013. "Roku Streaming Player." Roku Streaming Player. N.p., n.d. Web. 3 Dec. 2013.

5 comments:

  1. Alex, I have to agree with you 100%, the days of cable TV are coming to an end. I can’t quite believe people’s tastes are changing so fast, but you can see this anywhere in the tech industry. As with the growing popularity of this Roku device, paying a flat rate instead of a monthly subscription is what many people should be looking for. I myself personally do not watch TV, but paying a monthly payment, no matter how small it is, will ultimately add up in the end. With the fact that you can do so much with the device itself, streaming in HD and for the sports fans, brining in future support of live games is fantastic. I really think the next generation of television is already making a strong presence in many homes, as the world is moving closer and closer to having everyone be connected online. By looking at the success and features of the Roku device and others like it, I think it’s safe to say this is the future. Great post.

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  2. The fact that someone besides myself has recognized this is incredible. The entertainment outlets we used to resort to are slowly being overtaken by new and improved outlets requiring much lower fees. First we witnessed entertainment rental firms like Blockbuster and Hollywood Video be run out of business by the new "big name" Netflix, and now were seeing live entertainment providers like the cable companies being run out of business by these up and coming firms like Roku (even Apple has a product called "Apple TV" where you get Netflix, NFL Network, and much more). It's incredible to think how much the cost of entertainment used to be as opposed to what these new companies are able to charge for it (and still make huge numbers in revenue). I can't wait till our generation is paying next to nothing for entrainment...only if we could somehow get social security.

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  3. This is a great post! It's about time we stop paying so much for cable. Netflix and Redbox pushed Blockbuster out of the picture and now the Roku is pushing cable out of the picture. If you look back, you'd realize how much the price for cable has increased. With the Roku we are getting the same channels for a much smaller price. For the one time price of $89.99 we are basically getting the same features we would if we were paying $250.00 a month for cable.

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  4. Not only Roku, but netflix, hulu, redbox and other online streaming sites, including steaming from television companies such as abc, and cbs have really shook cable companies at the throne. The Cable companies thought they had secured their throne through under the table deals, and buying politicians, however the advent of netflix and hulu with hulu plus has really threatened cable. My family, in fact, would not have cable, if it weren't for my fathers love of sports. I feel like that is the only reason Cable companies haven't been dethroned yet, there are not enough options to stream live sporting events. I feel like that is a relatively untapped marked that could be the final straw for the cable companies.

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  5. As much as I really hope this is true, I can't exactly trust that this is going to be an astounding success with the way cable companies are set up. If I recall correctly, companies like Time Warner and other cable companies have it so specific regions "belongs" to them, and reduce competition and boost income, and what would stop Roku from doing the same? After all, they are a company as well, and exist generally to make a profit.

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