With the number of “Cord Cutters” and even “Cord Nevers” on the rise, cord cutting could be considered the biggest challenge traditional television providers have had in the last 10 years. Does this mean that satellite TV providers have called it quits? Absolutely not! In fact, one could say that the satellite TV industry has never fought harder than it is now. Both sides of this epic battle have come up with amazing strategies and solutions, forcing providers, dealers, and consumers to be on their toes. Before we get into what the various players in the industry are offering, let me explain what cord cutting is.
What is Cord Cutting?
It’s actually pretty simple. Choosing to pay for streaming video versus paying for traditional satellite or cable TV is considered cord cutting. Some of the popular streaming options include Netflix, Hulu, YouTube TV, and Amazon Prime. Many people who originally decided to experiment with cutting the cord primarily did it because they believed it would be cheaper. But does cord cutting actually save money?
Here are a few factors to consider if you are thinking about cutting the cord:
In some instances, cord cutting can save your household money. If you don’t carefully think through everything, it could end up costing you more with the inconvenience of not having your TV entertainment centralized.
In order to have all your favorite binge-worthy shows at your fingertips, you may need numerous streaming subscriptions, causing you to spend more money on multiple streaming platforms.
Sick of having to suffer through commercials, or not having full access to all the entertainment you need? You may have to upgrade to the “Premium” package that your streaming provider offers, which includes a higher monthly base rate.
Frustrated at not being able to watch an episode without constant buffering? Having all your entertainment streamed over the internet requires a strong enough connection.
Compare a satellite TV package to a buffet and each streaming service to an à la carte dish. If you know you have an appetite, it makes more sense to go with the buffet because it gives you all the options at a fixed price. Deciding to go with several à la carte dishes you risk spending more because each item adds together and can potentially be more expensive. In short, an easy way to decide if cutting the cord is a good option for you, ask yourself “How big is my TV appetite?”.
How Are Satellite-TV Providers Responding?
Pay TV companies such as DISH and AT&T have seen the landscape in the industry change and have implemented features that align them with these changes. Both have launched their own streaming services (DirecTV NOW, Sling TV). They know that more and more people want the freedom to watch TV from any device and that not every consumer needs thousands of TV channels. That’s why we are seeing a strategy of imitation with innovation. The providers see a need for a simple streaming service offering specific channels or entertainment, and they are filling that need. The goal is to fulfill that need better than any other streaming option in the market. These big satellite TV providers are playing it smart and choosing to adapt and form new services, in order to successfully compete with popular streaming services.
Another way the satellite industry combats streaming is by focusing on the internet. Knowing how innovative the internet industry is, providers are offering bundle packages that combine both internet and TV, allowing them the advantage of offering the customer lower rates.
Who Wins In The End?
At the end of the day, the real winners are the TV viewers like you and I. Now that some decent competition has entered the market, more options are now available that give the consumer the freedom to choose what is best for their household. In the past, cable and satellite have monopolized the market. If you wanted TV, you NEEDED to have a traditional cable or satellite subscription. With these new streaming services, the big players in the satellite industry need to up their game more than ever before, giving the TV viewers everything they’ve been waiting for.