About 800,000 TV Cable/Satellite Subscribing U.S. Households are ‘Cutting the Cord’

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tv-cable-disconnected-1Sure you have seen all of the Cable TV and Satellite TV commercials and how crafty they are by explaining to you how they offer a better deal than the other. But what about Cable and Satellite TV put up against Antenna, Netflix or the Internet? According to recent reports from the Toronto-based Convergence Consulting Group, these old and new services may cause trouble for the big cable providers such as Comcast, DirecTV, Cablevision and even Time Warner Cable.

It has been reported that nearly 800.000 households in the U.S. have “cut the cord”, leaving their cable, satellite or even Telco TV (AT&T, Verizon FiOS) service providers. That means these people are resorting to using a digital Antenna, Netflix and other forms of streaming over the internet such as iTunes.

Of course 800,000 is really not that many U.S. households considering that it only accounts for 1% of the estimated 100 million U.S. households that currently subscribe to cable/satellite TV type services. I am going to guess here but in a few more years that number could grow exponentially creating a big dent in the number of cable/satellite service customers. With the way the economy is slowly swinging back, Americans are being a little smarter about how they spend their money and that includes home entertainment.

If Netflix continues to offer a service that allows you to stream movies for around $9 a month plus whatever high-speed internet access you have to pay for, then it could easily replace those $130 cable packages. What about your sports and local news you may ask? Well, what about it? That’s rather simple, install a digital antenna to that new HDTV set that you purchased on sale. The airwaves still offer “Free” programming only now it is digital and mostly offered in HDTV formats which is a plus for you if you still like “quality” entertainment.

The 800,000 figure is a rough estimate of the number of U.S. TV households that actually cut the cord by the end of year 2009. Just think, in 5 years that may be over half of all cable, satellite and Telco TV service providers making the switch to a less expensive alternative. Maybe the cable company will finally lower the price on their packages. Maybe that is wishful thinking but what do you think?

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