There is now a movement of cutting the cable cord from multi-channel packages in favor of internet-based content. This movement is especially prevalent in younger generations who are more apt to streaming content via the internet as opposed to cable television.
Leading the charge in fighting the traditional cable TV model are Netflix and Hulu. These companies began by purchasing the rights to previously-run cable television programming, creating an on-demand service where customers could watch their favorite shows at any time from any device.
This has caused Comcast to rapidly lose its customer base. Recently, the company reported its fourth-quarter earnings which resulted in a loss of 29,000 US cable customers. While the company is expected to launch its own streaming service this upcoming year, most customers have likely moved on from the company to its newer, more agile competitors.
Competitors create original content
Over time, internet-based television providers have picked up significant traction. This led to companies like Netflix, Hulu, and even Amazon, to create their own original content. The creation of this content is what is likely to spell doom for traditional cable companies.
