Why are Cable Service Providers Switching to Streaming Content?

Why are Cable Service Providers Switching to Streaming Content?

Over the past decade, many homeowners have transitioned from viewing content on cable to streaming through apps like Hulu TV, YouTube, Netflix, Amazon Prime, and Disney+. People are using more Smart devices on the go and want to view their favorite shows or game from anywhere. This shift has forced cable companies to restructure and streamline their businesses to match customer demand for streaming services. Offering the option for streaming apps has proven to be in the cable service provider’s best interest, and for good reasons. Here is why cable service providers are switching to streaming content.


What Does it Mean to Cut the Cord?

First, let’s talk about streaming content and the shift of viewers moving away from cable. You may have heard the term “cutting the cord” in recent years. If you have yet to hear it, this phrase typically refers to canceling one’s cable or satellite TV subscription in favor of streaming services. For many tech-savvy people, canceling their cable is the best option to lower their home entertainment bills and still have access to content that they want to view. However, many people still want to keep their cable subscription for various reasons like access to local TV or sports. Service providers have been working on ways to support their current customers better and gain new customers through the introduction of apps.

How Cable Companies are Competing with Popular Platforms

According to CloudWords.net, “Around 85% of U.S. households now have at least one subscription to a video streaming service, such as Netflix, Hulu, Amazon Prime Video, or HBO”. It is more important than ever to keep up with consumer demands and cut company overhead. Service providers are pivoting from just offering DVR and traditional cable programming to offering streaming apps with the flexibility viewers demand.

85 Percent of US Households Streaming

Streaming Apps to Match Customer Demand

The shift in customer demand for cable has made service providers change their approach to how subscribers can access their favorite programming. With the rise of streaming services, many consumers prefer watching TV shows and movies on demand rather than waiting for their favorite shows to air. Cable providers are responding to this shift in consumer behavior by offering their own streaming services to compete with these popular platforms. These apps provide some cable programs but are limited. If you are trying to view content away from your home on a Smartphone or tablet, you may only have access to select content. Some cable or satellite providers’ apps cannot replace the content they offer directly to your television.

Service Providers are Offering Better Flexibility

Streaming services offer more flexibility than traditional cable TV because users can watch content on-demand and on various devices, including smartphones, computers, and tablets. This flexibility allows cable providers to reach a wider audience and offer their content in new ways. A great example of how a service provider is updating their offering to provide more flexibility for their customer is the company Comcast.

You might’ve heard of their popular Xfinity app if you’re a Comcast customer. Xfinity and Comcast are the same company, just branded differently. Comcast is the “umbrella” company that owns Xfinity, the consumer TV and internet service provider. Xfinity is a cable TV streaming service that lets you watch live TV and is compatible with Smart TVs, computers, tablets, smartphones, or with Roku. You can enjoy your local news, sports, and local shows as they air in real-time. It’s cable TV, but with a significant upgrade giving the customer more flexibility in watching content.

Cutting Overhead and Costs

If you have subscribed to cable or had satellite TV, then you know that both service providers require an assortment of technology needed to operate the equipment. This equipment included HDMI cables, cable boxes, and satellite dishes placed on a home’s exterior. Not to mention that those big service companies also manage a lot of overhead; the contractors and the third party who supplies the contractors, MasTec installers, maintenance of equipment, replacement parts, insurance to cover vans and ladders used to install, and even lawyers to manage the extensive operations. It’s an expensive business, and those operating costs have been passed on to the customer for years.

By switching to streaming services, providers can save money because they don’t have to pay for expensive channel bundles, equipment, or the workforce to get their services into homes. Instead, they can offer their content over the internet, which is often cheaper to distribute than traditional cable TV.

How Can Blu Glo Help

Cable providers are switching to streaming content to stay competitive in a changing TV landscape. Big-name service providers like Comcast, AT&T, DIRECTV, Spectrum, and more are catching up with the times and appealing to younger generations that want streaming services. These companies no longer wish to be restricted to the equipment rentals business, and subcontracting installers is a significant loss to their bottom line. Introducing new apps will significantly reduce overhead costs and make them more user-friendly for consumers allowing them to meet the evolving needs of their customers.

At Blu Glo Home Media Systems, we receive a lot of questions about cutting the cord. Many of our clients subscribe to cable companies just because the cable provider is also their internet service provider. If you want to cut the cord but not the cable, you can subscribe to internet-only packages from your cable company or reach out to your cable company for new bundle packages. Many companies that offer high-speed internet access will lower your bill to keep you as a customer – like Bret, owner of Blu Glo. His cable bill went down over $100!

Contact us at 817-332-2233 to learn more about how we can help you get better streaming services and internet speeds in your home today!