The Landscape of Online Television Is Changing


While cable and satellite operators increase the price on services, including the addition of value-added DVR services like the new DirecTV Genie, streaming companies like Netflix and Hulu continue to grow–mainly due to the fact that they are two of the best places to “catch up” on your favorite television shows.

With a new study out by TVGuide, more people are just using the aforementioned services to simply catch up on their favorite television shows, however a good majority are still cutting the cord. The main issue of contention with services like Hulu and Netflix is advertising revenue, in addition to satellite and cable providers keeping subscribers.

Apple has always been a contender in the “replacement television” market, however they provide a video on demand service. Amazon followed suit, while Netflix and Hulu provided instantly streaming options for users. Now Verizon and Coinstar, parent company of Redbox are getting into the fray, which will provide a consumers with a new choice for streaming content.

That doesn’t necessarily mean that cable and satellite operators are concerned, but rather, they are starting to pay attention. Both DirecTV and Dish Network are battling with broadcast networks to keep their channels included as part of their line-ups. Cable companies Comcast and Time Warner are experiencing similar battles.

And while the cost of transmitting popular broadcast networks across cable and satellite platforms is increasing, consumers are finding alternatives in both Netflix and Hulu–which begs to question why are viewers still paying upwards of $50+ per month for cable when they could simply subscribe to either of the two most popular streaming services for less than ten dollars per month?

Cable and satellite providers do have on ally in the move to a less expensive television environment in the form of apps, which have are readily available on nearly any mobile or tablet computing device and provide users with a premium second screen experience.

Television streaming companies are combating this by introducing their services on more devices, like gaming console’s and set-top-boxes. The future of consumption is definitely in question, and traditional networks and companies are looking at ways to survive the impending “internet-connected-device” storm.

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3 Comments

  1. qwerk
    qwerk October 22, 2012 at 7:36 am

    Either you’re just being a typical biased pro-online everything or you’re seem to have a problem with reading a whole article before making a myopic generalization. The starting point of the article said contrary to popular belief, cord-cutting IS NOT that big of a rising trend. 10% of 1000 or something respondents to a survey who are cord-cutting IS NOT A MAJORITY.(for god sakes). People are just watching reruns from cheaper online sources. THATS ALL.

  2. qwerk
    qwerk October 22, 2012 at 7:39 am

    Above edit: “you’re seem to have…” changed to “YOU seem to have…”

  3. Charles Flacida
    Charles Flacida October 22, 2012 at 11:28 am

    Online TV is not going to replace TV until we get connected options on a big screen TV that work. Having a clumsy remote interface coupled with slow connection speeds, makes watching internet TV easier on mobiles, tablets and PC’s. So until technology gets better watching online involves as you say, using online streaming to catch-up and watch in different areas of the house rather than taking over.

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