Entering the digital age
Cable television first appeared in Pennsylvania in 1948 to enhance “over-the-air reception” in graphically remote areas. Since then, cable has been providing us with quality television entertainment for over 60 years. What started as a luxury for those who could afford it has become a staple in the homes of nearly every working class family in North America. Like all good things, however, must the cable TV age come to an end?
With pay-TV prices on the rise, it’s no surprise that consumers have started ditching their expensive cable subscriptions for a more affordable option. Netflix, a company that has been around since 1997, has rapidly grown from a mail-in DVD service, into one of the most popular online streaming services in the world. As of last year, Netflix is available in Canada, the US, Latin America, and Europe, and has over 50 million subscribers worldwide.
Why is Netflix so popular? Maybe it’s the fact that its movie and TV libraries are on demand. Maybe it’s that you can take it on a mobile device wherever you go. Even more likely is the fact that it’s only $8 a month. Whatever the reason may be, Netflix and other online streaming services have garnered overwhelming popularity worldwide – especially with youth – and the numbers just keep rising. According to the Statista website, from the end of 2011 to the end of 2014, Netflix subscribers grew from 21.45 million to an astounding 39.11 million in the United States alone. It seems like such a simple concept: movies and TV shows anywhere, anytime. A simple concept yes, but with an enormous impact.
Although this may be great news for Netflix, what does this mean for the major cable TV providers? As more and more people “cut the cord” of pay-TV and choose the inexpensive, streaming world of Netflix, Crave TV, and Hulu, cable subscriptions continuously fall. Quentin Fottrell of Market Watch notes that the number of cable and satellite TV subscribers in the US fell by over a quarter of a million in 2013.
If this trend continues, one won’t have to imagine pay-TV eventually becoming obsolete.
On the other hand, there are certain features that Netflix hasn’t acquired yet, such as live sports, specialty channels, and a collection of network TV shows that are still on the air. Features such as these are what keep approximately 95 million people paying for cable. One must admit that cable boasts its own set of appealing qualities, but will it be enough? Or will we watch cable TV fade away, along with MySpace and VHS movies.