It’s inevitable that online streaming services are growing in what used to be a predominately owned cable space; however, cable has not lost its power just yet. According to a report by Leichtman Research Group 83 percent of households are still shelling out money every month for TV. Consumers may not be as quickly to jump ship if cable providers can make subscription options and pricing that fit their needs.
Comcast, in particular, touted its upcoming streaming service to analysts during an announcement of their third quarter earnings back in July called the Stream.
The Stream will allow current Comcast customers to watch select channels, including HBO, for a price of $15/month. This service is slowly being rolled out in certain locations.
There may be more attention though on Comcast’s other upcoming internet-based service called Watchable. This service is intended to rival with YouTube. It will feature programming from popular members of the internet establishment: Buzzfeed, Machinima, AwesomenessTV, and Vice among others. Comcast is striving for a win with this service and hope to capture consumer’s attention with these big internet names.
Are cable providers too late though? Will the Netflix’s and Hulu’s of the world take over, or does cable still have something over competitors in the online streaming space?
Content and Delivery
Content remains the focus for consumers and providers. He who controls the content win’s the consumer. But how important is the content without a way to deliver it? It’s like any well-oiled machine; there’s a set of parts that make up that machine for it to run properly, without one element the whole thing will fail.
Cable has the same advantage. Without internet service, there isn’t a way to deliver the content. Cable can continue to compete in this space by improving their bandwidth and lowering costs which will keep them relevant. Increasing bandwidth will allow consumers to receive content faster keeping them top of mind when considering add-on services, like The Stream.
Be Mindful, Be Proactive
Cable needs to be mindful of the customer and their wants which lately are ever changing in this digital world. People will not revert to old ways, especially when they have had a taste of content and speed that they like. Users are impulsive; they want content now and at an affordable price, which isn’t something that is unrealistic anymore with multiple companies diving into the streaming space.
Cable needs to stay in control of the two central keys: accessibility and content. These two remain constants that can make or break a consumer from jumping ship or staying on-board for the ride.
Pricing may not be the first option cable providers want to reduce, but testing the waters may not be so bad if it keeps the consumers in your ship. Sacrifice a little in the beginning to gain a bigger reward in the end.