Question: The number of consumers subscribing to cable television services in
The number of consumers subscribing to cable television services in the U.S. had declined significantly by the end of the first decade of the twenty-first century. In the third quarter of 2010 alone, almost 120,000 consumers discontinued their cable subscriptions and the pace of decline is expected to not only continue, but to accelerate as well. This pattern of what some industry observers refer to as “cord-cutting” is being driven by a shift from cable to web-based channels provided by such firms as Hulu, Walt Disney, NBC, Universal and Netflix. Not only are the monthly subscription charges typically charged by these firms lower than those charged by traditional cable companies, but the web-based channels also seem to fit better with modern consumer lifestyles. What do you think is the cause of this dramatic shift from cable channels to web-based channels for delivery of home entertainment?
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