Business

Streaming Services Begin to Beat Cable Subscriptions in ‘The Battle for the Couch Potato’

Millions of Cable Subscribers Switch to Streaming Services

(Photo: Netflix)

Due to improved and increasing streaming services provided by companies Hulu, Netflix and others, millions of Americans are “cutting the cord,” if you will, from cable companies.

A recent report from Convergence Consulting Group found between 2008 and 2011, more than 2.86 million people canceled cable subscriptions in favor of online streaming. The report – The Battle for the North American (US/Canada) Couch Potato: Online and Traditional TV, and Movie Distribution — in its sixth year now, shows that compared the previous year, 2011 saw 50 percent fewer customers signed on for cable services.

Not only that, but the report states broadcast and cable networks are making the online full-episode TV they do offer “less free” by increasing ad time, and/or reducing available shows for free.

Millions of Cable Subscribers Switch to Streaming Services

Hulu allows users to watch many popular TV shows through the Internet. (Image: Hulu)

Although the report forecasts “cord cutters” will reach about 3.58 million before the end of 2012, it does project that cable subscriptions will be up next year to 185,000 new subscribers (112,000 subscribers were reported for 2011 and 272,000 in 2010).

Yahoo! News reports Convergence co-founder Brahm Eiley speculating that increased prices for streaming services will be a factor in this small rebound for cable and broadcast companies. The issue is that sites such as Netflix need to keep up with the cost of streaming rights in order to provide content to their users. Yahoo! reports Netflix owing $1.1 billion for streaming rights in 2010, whereas the number jumped dramatically to $3.9 billion in 2011.

Comments (59)

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  • Grace1798
    Posted on April 7, 2012 at 8:39am

    I agree with you all when you say tv is all crap, it truly is all CRAP! We have satellite tv but it’s still crap. Only thing I like to watch on it from the few choices I have out of 60 channels is Waltons, Dr. Quinn, Twilight Zone and some good info on Military, DIscovery and History channels but many of them push evolution, which I turn off immediately. They talk AS IF THEY WERE ACTUALLY THERE coming up with specific dates…..who is so stupid as to fall for that? We have teenaged grands and I fear for their future because of some of these programs that show nudes and sex. I could not imagine growing up with that on tv and not having it affect me. They’re destroying the kids, step by step, inch by inch, taking over their innocent minds and corrupting them with their theories that they push AS A FACT with numbers (again AS IF there were THERE).

    Report Post » Grace1798  
    • The Giver
      Posted on April 7, 2012 at 3:10pm

      So true! I love the old shows. Now I’m watching the old movies on Amazon Prime. You get free 2 day shipping (imagine at Christmas time) and tons of free movies that you can stream on your computer. It’s about $75 a year. No commercials… just the joy of those old movies. I liked the Judge Napolitano on FOX but they got rid of him. There really is nothing on tv anymore. The teens nowadays do everything on their laptops and phones. Many don‘t even watch all the junk that is aimed at them because they don’t watch tv. I don‘t care for the Discovery channel’s Global Warming , THEORY of Evolution and Bible spins either. Cable Choice is looking like more of a possibility. No more paying for channels that you don’t agree with. I bet many folks are canceling subscriptions because of the economy too. If you have to pick between cable and internet, internet wins.

      Report Post » The Giver  
    • SgtB
      Posted on April 7, 2012 at 7:13pm

      You can deny evolution all you want, but the reality is that things change in this world. There is fossil as well as living evidence of evolution. Nearly every species of agricultural significance has been bred and changed through that breeding to be far different than the plant species it was derived from. Take a dog for example. All dogs belong to the same species because they can inter breed and make viable offspring. They can even mate successfully with wolves. But they vary vastly in shape, size, and intelligence. If this were to happen through natural selection taking place over a few thousand or even million years, then you have enough divergence in the genetics of the separated populations to cause speciation to occur and the separate species can no longer interbreed successfully.

      This process takes an enormously long time. Most people don’t know this, but brown bear, grizzly bears, and even polar bears are all the same species and can interbreed producing viable offspring. They are like the natural version of what we have done to wolves to make dogs. They are just separate breeds, but if they stop randomly interbreeding or if they somehow become completely isolated, they will eventually become separate species, as most think they are now.

      Now, those dates you speak of come from carbon dating or geological timescales. Either way, no one is putting exact dates on anything in prehistory, they are placing things within a date range of a few thousand years.

      Report Post » SgtB  
    • jcldwl
      Posted on April 8, 2012 at 8:56am

      We got rid of direct tv last year and are loving it. The freedom felt from no longer paying the fees and taxes on that ridiculous waste of time is beyond description. Glenn has it right. we have a 21 year old and seeing him watch everything on the internet shows us that TV is a dying entity. There is nothing on tv worth paying for. There are only two reasons I keep the internet. 1. I need it for my business and 2. GBTV. No Facebook, No Twitter, Nothing Google and especially no Smart(sheople) phone. You want to feel some freedom? Get that silly crap out of your life. My Rant.

      Report Post » jcldwl  
    • 666Sucks
      Posted on April 9, 2012 at 12:27pm

      Don’t be to harsh on evolution, God also created evolution. He planted a garden, and tends to it as needed. In fact I believe we are in for a huge weeding! What I believe is that Science and religion go hand in hand. Science is how God created us, the bible is how he wants us to be. Man can not go on without both! Want proof, just look around at the evil that has filled the void left By God who was evicted by the left AKA evil! But we let them do it via our complacency, now, are we willing to fix it!?!?

      Report Post » 666Sucks  
  • oneillptgd
    Posted on April 7, 2012 at 8:16am

    Antenna tv is plenty. What is available on streaming is very limited sometimes. However the savings from no more cable or satalite is going to better use of my time and resourses. Lately it’s gasoline!

    Report Post »  
    • MrObvious
      Posted on April 7, 2012 at 9:46am

      I hear that.
      Many streaming services are free. With commercials.
      Some are cheap.
      Cable and satellite TV services are not free, not cheap, mostly not as flexible, and often, not at the same quality level as streaming.
      Gas is a major expense.

      Report Post »  
    • Americanius
      Posted on April 7, 2012 at 10:23am

      I cut the cable TV cord 2 years ago and never looked back($175/mo). Wife and I were off between Christmas and New Years and there was nothing to watch. Cable channels were playing other cable channels reruns and reality programming. I use an HTPC to record over the air HD broadcasts for viewing at a later time or stream off the web. I now find myself spending more time on productive activities and reading.

      Cable TV provides access to one major product, sports. Sports fans won’t give up their cable TV no matter what it costs or how lousy their favorite team plays.

      Some way though the cable and media companies are going to get their revenue be it higher costs for broadband or in the case of mobile phones tiered data plans. Verizon wants to increase streaming and mobile TV and why not after they terminated unlimited data plans. But that’s their right in a free market. I can chose to participate or not. On the other hand Fedzilla hits my broadband and wireless bill every month to redistribute my assets to provide free or reduced media services as a necessity(created right). There I don’t have a choice.

      Report Post »  
  • amerbur
    Posted on April 7, 2012 at 8:08am

    I think my communication costs are high even though it is critical in my life. I use radio, books, newpapers, cable and the internet to get my information. I want to have access, and I understand it costs to provide these services. Computer, radio and written information are the most critical for me. Cable is strictly a splurge. I primarily watch only the national and local news and college football, which is not alway available on Cable. The pogramming by hollywood is offensive to me so I rarely watch what they produce any more and I rarely enjoy going to the movie theator as I no longer relate to what hollywood produces. The last time I went to the theator was to see Monumental. I took my parents and they loved it. I still have a land line so I bundle the services of internet, TV, and phone. They just raised my rates so I may have to get rid of the phone and the cable though I do not want to do this. Computers do not last as long as televisions and crash more often. The cost of everything is going up. My concern is that government will regulate access. Everyone had better make sure that competition, access and free communication remains the law of the land. Whatch what the Communication Czaar is doing and stay in contact with your Congressman and Senators.

    Report Post »  
  • Apple Bite
    Posted on April 7, 2012 at 8:05am

    I’m a 2nd shift worker, why pay for cable when I’m hardly ever around to watch it? It makes no sense to me… So, internet is the best way to go right now. Not to mention, MSM killed Cable subscriptions with crappy programing. Too much damn dancing around and reality TV for my liking. And the only thing I’d watch anyhow is Swamp People, other than sports.

    Report Post » Apple Bite  
  • Gonzo
    Posted on April 7, 2012 at 7:44am

    When they get full time FNC and an NFL package I’ll cut the cable. Everything else you can already get on ROKU.

    Report Post » Gonzo  
    • voodoolife
      Posted on April 7, 2012 at 1:56pm

      Exactly. I did cut the cable cord a few months and I get FNC updates over the web, and I do have to hit the bar for football now, but that’s not a bad thing :) Nugent 2012!

      Report Post » voodoolife  
  • 80mesh
    Posted on April 7, 2012 at 7:29am

    i killed my tv subs 4 years ago ….. what an insidious time wasting invader

    Report Post » 80mesh  
  • hillbillyinny
    Posted on April 7, 2012 at 7:22am

    “Cut the cord” more than a year ago! I miss nothing, in fact since most of my news is gleaned on line for various sources I CHOOSE, I often know what is going on BEFORE my friends and acquaintance do and in more depth and detail! And I don’t waste time on “dribble”!

    Services like GBTV and other on-line services, both news and entertainment, IS the future, and for me, is the TODAY!

    Report Post »  
  • kcares
    Posted on April 7, 2012 at 7:04am

    Cut the cord over 2yrs ago, and do not miss it at all. I can watch tv at my daughters, but there isn’t anything on worth watching.

    Report Post » kcares  
  • antiprogressive
    Posted on April 7, 2012 at 4:55am

    I cut cable a few months back for ANTENNA!!

    Less wasted time searching with channels of CRAP.

    I rarely even turn TV on these days.

    News online – to he!! with the rest.

    Report Post »  
  • americangirl
    Posted on April 7, 2012 at 4:26am

    Does anyone know what streaming service there is for Disney Channel, History, Discovery, Sci-Fi National Geographic and ESPN 2? The main network I watch the most is ABC occasionally- Like Last Man Standing can you get this through streaming service too? If I could get all of those channels I probably would make the switch because I dislike the cable service so much and it’s so expensive for terrible service.

    Report Post »  
  • burnteye86
    Posted on April 7, 2012 at 3:46am

    I cut my TV service last month and my new bill (for internet) is just 51.95 a month

    Report Post » burnteye86  
  • Thomas12
    Posted on April 7, 2012 at 3:20am

    This is inaccurate, cable services is a broad term. What they should have said is less people are subscribing to “video” services with cable companies they still pay for the Internet service that allows for the streaming. It should also be mentioned that those major companies provide IPTV, streaming, services for their video based channels. This is almost moot to mention.

    Report Post »  
  • DockScience
    Posted on April 7, 2012 at 2:24am

    Comcast, Time-Warner, THIS IS YOU CUE!

    Time to raise rates again.

    Report Post »  
    • TAXEVERYONE
      Posted on April 7, 2012 at 8:14am

      Time Warner in North Carolina only hires people for Customer Service who were too dumb to be hired by the DMV. Then they train them to argue with the customer and to develop a huge chip on their shoulder.
      I am firing them for good!!!

      Report Post » TAXEVERYONE  
    • MAMMY_NUNN
      Posted on April 7, 2012 at 2:20pm

      Don’t worry they will switch to charging by Kilobit usage. I quit cable when Hulu was still in development the only channel worth watching was Fox News and TCM and those channels were only available in a expanded package which cost more.

      Report Post »  
  • NOT A CRAZY
    Posted on April 7, 2012 at 1:31am

    Netflix is royally screwing up their deal. They let their one highlight, Starz, go recently. They don’t put any decent new movies on. I am getting ready to drop them altogether. I would not buy stock in that sh1itty company.

    Report Post » NOT A CRAZY  
    • NeoFan
      Posted on April 8, 2012 at 12:15pm

      What you don’t think Stripes is a good movie?

      Report Post »  
  • KOseekingtruth
    Posted on April 7, 2012 at 1:19am

    Cable is just unreasonably expensive. If they’d let you choose your channels without playing that bundling game of shells.they would not be loosing so many people.

    Report Post »  
    • Truth1776
      Posted on April 7, 2012 at 2:45pm

      I agree!

      Report Post » Truth1776  
    • ohiowordguy
      Posted on April 8, 2012 at 11:02am

      That’s the ONLY thing that can save them: “A la carte service.”

      Then with free market forces at play, watch all the cr*ppy channels go bye-bye. There are dozens that would never survive being “unbundled.”

      Report Post »  
  • 1casawizard
    Posted on April 7, 2012 at 12:55am

    I watch what I can free from my antenna. I get all Atlanta and Chattanooga plus outlying areas. It might cost a couple of dollars for the extra juice.

    Report Post » 1casawizard  
    • 1casawizard
      Posted on April 7, 2012 at 1:13am

      @ME. I’d like to reply saying that the couple of dollars extra was attributed to the signal booster box that I use. If you don’t need one, don’t use one. I’m 60 miles N. from center of ATL. I get all of above plus Rome, Athens, others. Comcast, AT&T is not offered in my area.

      Report Post » 1casawizard  
  • Tired of Code Names
    Posted on April 7, 2012 at 12:01am

    Interestingly, most of my friends who introduced me to Glenn Beck back when he was on Fox have not went to GBTV. I am one of the few. Most of the folks I know are big sports fans like me and usually leave cable to go to directv because they have a good deal with their sports package. It comes with I guess HBO and Cinemax or some other such…..which I never watch. I use my hard earned green backs in order to see almost every Twins game on Fox Sports North just like I was sitting back at home in Minnesota with Mom and Dad and the rest of the family. Plus directv has a great selection of college football. Works even better for me now that Nebraska is in the Big 10 and the BTN is in the directv package and living on the east coast I get to see all the Nebraska games as well……without having to do pay per view.

    Report Post »  
  • Dinkiecb
    Posted on April 6, 2012 at 11:41pm

    With all there is available on the internet why would you need cable at all? Most of cable is re-runs except for the news channels and they have websites .. you surely can read. You can get radio stations from all across the country and listen to news, music, or just about anything. Most of the cable news talking heads have radio shows. Local news .. watch local stations. Just need that steady internet connection and your good to go.

    Report Post »  
    • lukerw
      Posted on April 7, 2012 at 12:07am

      I find that the fewer Channels that I can access… limits my choices… so I get disappointed faster… rather than Surfing for long periods, to be disappointed.

      Report Post » lukerw  
  • TheSoundOf Truth
    Posted on April 6, 2012 at 11:31pm

    The cable and DSL companies are well aware of this, so what they are doing is throttling speeds and putting bandwidth caps on their user’s IP service to prevent them from migrating to the cheaper, more efficient streaming services.

    Century link/Quest actually has the nerve to tell it’s customers that there will be bandwidth caps on all internet services EXCEPT their TV service, Prism.

    Comcast will actually BAN you from using their service for 365 days (the “fire” you as a customer) if you exceed their 250GB/month cap. So they’d rather sacrifice your business and risk losing you forever than have you switch to a streaming provider and just use their IP services.

    All of the old phone companies that are now DSL and the cable companies have “grandfathered” agreements that eliminate their competition, because local GOVERNMENTS grant them monopolies in IP service for their regions. They apply decades-old territorial agreements for cable and phone service to ISP, which is actually pretty illegal.

    The US is actually very, very far behind the rest of the civilized world in providing cheap, effective broadband internet services. Most communities in the US fail miserably with broadband compared to the rest of the world. If you check speedtest.com, you can see where you rank. Mine is constantly below the global average, and my company rates “D” on the grading. Yet I pay nearly $90/month, and now they have a usage cap, which seems to coincide with the expansion of

    Report Post » TheSoundOf Truth  
    • soybomb315
      Posted on April 7, 2012 at 12:19am

      interesting post. thanks

      Report Post » soybomb315  
    • Beckofile
      Posted on April 7, 2012 at 9:24am

      Have Comcast blast Internet with 32 mega of download. Stream multiple TVs at night and music all day plus regular Internet computer work. All with no outrage once. Saving 150 a month. Have fun channel surfing the crap. I pick when and where with few commercials resulting in less curiosity about my need for Viagra and cialis.

      Report Post » Beckofile  
  • GoodStuff
    Posted on April 6, 2012 at 11:31pm

    Cancel you cable!!!! You’re subsidizing crap channels like MSNBC, CNN, MTV, etc. even if you never watch these channels.

    Your cable bill helps pay Al Sharpton’s salary.

    Go streaming…only pay for the channels you want!

    Report Post »  
  • justangry
    Posted on April 6, 2012 at 11:29pm

    I’d like to make the switch, but college football is basically the only thing I’d really hate to go without.

    Report Post » justangry  
    • lsutiger
      Posted on April 7, 2012 at 1:30pm

      I have an antenna and a Roku. The Roku offers channel services (like Playon) which you can watch ESPN3 live. With the antenna I get the big three (in full HD), so college football will not be a problem. If there is a game I want to watch that I will not get, I go down to the local sports bar. And it is saving me $85/mo!

      Report Post »  
  • ForMyChildren
    Posted on April 6, 2012 at 11:23pm

    Who is responsible for the current economic malaise? If you ask Bill Whittle, it‘s Obama’s pals like David Axelrod, Harry Reid and Tim Geithner, some of the many Merchants of Despair. These merchants are costing taxpayers trillions and creating deep national divides based on class and race. Will the despair continue for another four years? Find out.

    http://www.youtube.com/watch?v=Y-FGgoReyNE

    Report Post »  
  • HotFixIt
    Posted on April 6, 2012 at 11:20pm

    GBTV, Netflix and Hulu Plus with my Roku….. what else can one ask for? I still have my cable but don’t have anything but regular cable… nothing extra so I can get my local stations and Fox News along with some of the basic stations…. no DVR, we still use VCR’s in our homes so we can share tapes. Do you know how difficult it is to find a working VCR now days!

    Report Post »  
    • CatB
      Posted on April 6, 2012 at 11:50pm

      I do the same .. and with Amazon Prime (only $79 per year and I get way more than that in just free shipping) on my Kindle Fire I can get movies, tv shows and books for free … and free shipping on almost everything on Amazon.com … I have cable but only on one TV (no recorder) and I cut the service back when I found that I was paying for ALGORE’s channel ;-) I have antenna tv along with ROKU in the bedrooms … the first thing to go out in a storm is the Cable .. and I live in Florida .. good to have a tv or two hooked into an antenna…. at least until the power goes out :-)

      Report Post »  
    • randy
      Posted on April 7, 2012 at 2:54am

      And if you know where and how to look for it, there isn‘t anything you can’t watch on the internet free of charge from your PC or Mac to your big screen TV with an HDMI cable. :)

      Report Post » randy  
    • tajloc
      Posted on April 7, 2012 at 2:01pm

      very easy. Ebay

      Report Post »  
  • Dougral Supports Israel
    Posted on April 6, 2012 at 11:11pm

    I watch streaming services almost exclusively. GBTV, Netflix, and Amazon Instant Video are my favorites. I also buy a fair number of old films on DVD.

    Report Post »  
  • Darmok and Jalad at Tanagra
    Posted on April 6, 2012 at 11:08pm

    GBTV and NETFLIX, is all you need.

    Report Post » Darmok and Jalad at Tanagra  
    • mharry860
      Posted on April 7, 2012 at 12:16am

      I only watch GBTV and Twit.tv, even though they’re a bunch of libs, daily. The only thing I watch on cable is motocross, supercross and some off road racing on Versus. My wife however, wonders why I won‘t come out of my office when she’s watching “Say Yes To The Dress”.

      Report Post » mharry860  
    • canadianproud
      Posted on April 7, 2012 at 1:05am

      gbtv and netflix is the only thing i’ve used in over a year. best content ever.

      Report Post »  
    • Fightforlife
      Posted on April 7, 2012 at 10:51am

      Ditto, and if you miss tv episodes go to EZTVSTREAM.COM it‘s free and has newer episodes that Netflix doesn’t.

      Report Post » Fightforlife  
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