Cable used to be my go-to source for entertainment. Especially when I was sitting at home and had nothing to do, I would turn on the TV and check the guide to see what movies would be starting soon.
It was also a Saturday night routine for my family. We’d all sit in the living room and watch whatever movie was debuting that night. It was finally a time we all could relax and spend time together.
Within the past decade or so, all of that started to change…
Companies like Netflix and Hulu emerged and started offering easy access to your favorite TV shows and movies.
Now, when you want to watch a movie, you can play it (or stop it) at any given moment. You are in control.
Could This Be Cable’s Demise?
Cable companies like Comcast (NYSE: CCV) and Verizon (NYSE: VZ) tried to stay relevant by incorporating their own version of video streaming into their plans — a guide that would allow you to pick from a selection of movies that were offered from any of the channels you were subscribed to. And of course, they had movies you could rent — but who really wants to pay $4.99 for a movie? I know I didn’t.
So, it really shouldn’t come as a surprise to learn that U.S. teens are finding cable TV to be unnecessary and instead are choosing Netflix and YouTube.
A recent survey of 5,500 teens from Piper Jaffray further proves this. The survey found that 55% of teens thought they could stop watching cable altogether because they’d be able to get the video they wanted online.
These teens, our future generation, see cable TV as pointless and are more attracted to platforms that allow them to control the content they want to watch.
Netflix (NASDAQ: NFLX) and Hulu created the basis of the instant video streaming platform, and it caught on very quickly.
However, there is one thing that instant video streaming greatly lacks, and that’s being able to stream TV network shows as they air.
While Netflix, Hulu, and Amazon offer some network shows, it usually takes a while for recent seasons to become available to stream, which is a huge reason all three companies have started to produce their own original series to help fill the gap.
But that’s still not enough for subscribers.
Introducing YouTube TV
Google parent Alphabet, Inc. (NASDAQ: GOOG) will be launching a $35-a-month live TV service on YouTube known as YouTube TV.
YouTube TV will directly compete with cable TV. It will provide 39 channels to customers that include local TV channels like ABC, CBS, FOX, and NBC. Subscribers will also have access to YouTube Red and have the option of adding on Showtime or Fox Soccer Plus for $11 or $15 a month.
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Right now the service is only available in five U.S. cities: Los Angeles, New York, Chicago, Philadelphia, and San Francisco Bay Area, with hopes of adding more locations in the upcoming months.
This service is still in its infancy, so some of its features could seem a little inconvenient — like only being able to stream it to your TV by using Chromecast or if your PC is connected to your TV.
Google still needs to work on developing apps for popular devices like Roku, Apple TV, and Amazon Fire TV.
However, YouTube TV does provide a cloud DVR with unlimited free storage that’s able to store a show in the cloud for up to nine months.
It also has the ability to have six accounts per household, with up to three simultaneous streams.
Yes, this new service from YouTube has its perks and promises, but as of right now it’s really hard to imagine that it will replace cable. It’ll most likely be lumped in with all of the other companies that also offer streaming services.
In order to replace cable altogether, there needs be a streaming service that will offer more flexibility for adding on certain networks/channels because no one wants to pay for three or more different services just so they can have all the networks they want… and for now, that just might be cable’s biggest perk.
Until next time,
Jennifer Clark
Pro Trader Today