Is The Future Uncertain For Cable TV

The economic market today is rapidly changing. Technology is rapidly changing. The stakes are high for cable TV to be able to keep up with both. The changes and costs associated with technology changes are overwhelming. Though cable has been a staple in many homes for a long time, shifts in the market threaten the future of many networks. Cable providers struggle to continue to keep costs down for consumers.

Cable is fortunate to have been the first on the scene when additional networks started popping up. Some that were originally only offered on cable have since switched format to be available at no cost to everyone. If people wanted to watch lots of movies on television, or just wanted more than the basic channels, then cable was their alternative.

The world was wonderful without competition. Then along came satellite. Cable providers everywhere now have some serious problems in keeping up with the other guy’s rates and package deals. The emerging technology has not helped cable at all in being able to reduce their own costs in research and development, and also in upgrading entire systems. With a rise in internal costs, and a decrease in revenue, it is just the beginning of the hard times ahead for cable.

Consumers have long been putting on pressure to cable providers to offer smaller channel bundles. They have wanted this primarily because they feel that they are paying for a lot of channels that do not particularly watch. They want the ability to personalize their subscription to get what they want for the price they want. Over the years consumer groups have put a lot of pressure on the cable providers, however it has all been resisted, until now.

The cable industry initially argued against this, stating that it would actually raise costs and would be too difficult to maintain. However, with new technology, and new pressure from a new source, they are reconsidering. Cable networks everywhere have been in heated disputes over the increase in fees and production costs. The difference in technology and these debates make smaller bundles or individual choice in channel bundles a much more attractive option now.

Production costs are increasing across the board for most cable networks. Ones like the Food Network have actually gone through with pulling their access from cable providers in order to recoup some of their expenses. The cost of the on screen talent alone is very high. They want to raise their fees and increase their income from cable.

Given this new source of pressure for the smaller bundles, it raises the question will this actually be of benefit to consumers? In this respect, cable providers will offer smaller packages, but without reducing the cost. So really, unless a person is just sick of having to flip through channels that they do not want and never watch, which is possible, then there is little advantage for the customer. The a la carte option here could be very pricey.

The cable TV industry appears to be at a crossroads. Where things go from here is anyone’s guess. A future without cable television seems very unlikely though.

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