Yes and No. Yes, Internet TV is a substitution service for pay TV. But consumer behavior studies suggest that the vast majority of TV viewers are using pay TV with Internet TV. It is a substitution service for many, including yours truly, but not most. Most disconnects from pay TV aren’t due to Internet TV but because of the value proposition of pay TV.
Think about it. Ten years ago cable or dish TV started at $30 or so per month and provided most every channel the typical consumer needed. According to Centris, in 2011 the average digital cable bill is $75/mo and that is to increase to $95 in five years. I believe consumers are at a breaking point and some broke years ago and cancelled service finding Internet TV somewhere along the way. Yet, pay TV providers continue to drive up average billing and refuse to acknowledge replacement forms of entertainment such as Internet TV. As a result, this presents a larger gap between consumers and providers. This gap represents a larger audience for Internet TV as a REPLACEMENT entertainment service.
Our home pulled the plug on Dish TV a year ago, and we haven't missed it, or the subscription bill. We have always been able to watch all local broadcast network channels for free over the air by antenna, and that's about all we were doing anyway. It is amazing how many channels we can receive with our antenna. The HD signal is fantastic over the air, better than we could get through a pay service anyway. We were a bit anxious about losing ESPN, but when I discovered that much of ESPN's programming is available on my internet connection from Ringgold Telephone Co through ESPN 3 at no additional charge, the decision was easy. No cable bill. No satellite bill. Still, plenty of TV.
ReplyDeleteBlake, excellent! Thanks for sharing your story. I suspect others will be encouraged by it.
ReplyDeleteWe got rid of Dish several months ago and do not miss it either! Netflix and Hulu have replaced any shows we watch along with internet streaming. We were more than happy to get rid of the high bill too! We only watched a few channels on Dish anyway, isn't that how it usually works? I am surprised channels are not offered a la carte yet.
ReplyDeleteHey Sam, do ya'll use an antenna too or just Netflix/Hulu etc?
ReplyDeleteI have Dish and I'm going to have to get an antenna if I want to watch NBC it seems. Now I'm motivated to try to find a way to cut costs further. I watch the History Channel a lot but otherwise I think I can make do with an antenna. Now to find one and get a converter box. My TV is old. Now to do the research.
ReplyDeleteAny suggestion as to an antenna would be appreciated!
Hey, Very Nice Website about Traditional Tv.
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