TV Viewers Ditching Pay-TV Services, Heading Online Instead - HotHardware
TV Viewers Ditching Pay-TV Services, Heading Online Instead

TV Viewers Ditching Pay-TV Services, Heading Online Instead

Do you watch TV online? Even occasionally? All the time? If you're reading this now, there's a better than average chance that you have consumed at least one or two television shows in your lifetime online, and that number is growing fast. More and more people are looking to the Internet to get their entertainment fix, and the reasons are numerous. First, the Internet is more convenient. It's almost everywhere, whereas your 56" HDTV is understandably fixed in your living room. The second reason is cost: watching shows online requires only that you watch ads, whereas cable, satellite and other pay-TV options continue to get more and more expensive.

One area that pay-TV companies seem to ignore is the fact that most consumers want only 10 to 30 channels; forcing them to pay for hundreds that they'll never watch has annoyed consumers for years, and just recently has an alternative come to light. That alternative is the Internet, and while certain channels still aren't available online, many are. According to a new report by Convergence Consulting Group, 600,000 consumers decided to do away with their pay-TV service last year in favor of just using the Internet and OTA broadcasts. In 2008, just 200,000 did so. Still, in the past 2 years, that means that nearly a million consumers have decided to stop paying for channels they never watch and instead go online for entertainment.



Those are still small numbers compared to the millions and millions who still subscribe to some form of pay-TV, but the trend is obviously shifting away from those traditional methods. As more TV goes online, and as more tablets launch to get that content to users in more places, it will become less and less compelling to still pay $100+ per month for a cable package, DVR, etc.

How has your consumption changed over the past few years? Have you directed attention to the Internet that used to be directed at your DVR? 
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So all those new tv (3D) would be useless in afew years as every one switches to the internet? I watch shows on a tv more then on the internet. Mainly because i need afaster internet :D, it gets so annoying when it just stops to load.

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I agree completely with you on this Ray. It's not necessarily the cost of channels that drives me away, but it's just the convenience that websites like Hulu grant to me and millions of other people. TV shows have a set date and time, and if you miss it...well good luck waiting to see a re-run. The only time that I can see a re-run of a TV show the next week is anything on Discovery Channel, like Mythbusters

The fact of it is, Hulu gives people the ability to watch their favorite shows (if it's on the site) at their own time and pace. No need for DVR or anything that records a show for you. I know personally that I watch Family Guy, V, House, Chuck, The Cleveland Show, American Dad, The Office, and several movies as well on Hulu. I do it when I'm bored and I feel like watching TV shows that aren't currently on the TV.

I bet this is hurting the ratings of some prime time TV shows as well. I don't care about the sitcoms because their ratings are bad anyway, but like the shows I mentioned above...

However, because 600,000 surveyed people canceled their TV subscription, I bet this is why rumors started flying out that Hulu would soon be charging. I still don't know if that's true, and if it is...then poo.

I don't think it's cool that people have to pay for channels that they don't even watch, that's why I have a HD box from Time Warner Cable, but still the standard channel package. I get 30 free channels of HD, and luckily for me they're my favorite channels to watch: Discovery, AMC, TNT...etc...

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Cable boxes have already added on-demand features. It's just a matter of time before the companies sign agreements and put streaming of these sites right in the cable boxes.

I'm actually surprised that there's not been manufacturer-produced tuner apps for the video game consoles yet - but the content services would probably treat that like they did Boxee. :\

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Personally, i've cancelled my cable tv lol I live off of netflix and the internet now.

I can watch all my favorite shows online or I can download them off a torrent. No point in paying and extra $100 a month to watch a few shows. Plus all those movie channels with movies I don't want to see. And then on-demand stuff rarely has anything good.

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I love my direct TV. I couldn't live with out it, gotta keep up with F1~!

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Never really watched TV online!

I have checked out Hulu and the others, yet it always seemed like the show are delayed from the broadcast episodes. I was beginning to wonder if Hulu was still even around. I get the feeling that all of them will be replaced by the upcoming attack from the Cell phone companies. If they start to provide all the same quality that we get from cable and Internet then paying for one stand alone service make a whole lot more sense!

Like DerMeister said, gotta keep up with my F1. Since the higher digital channels are the only ones to provide SpeedTV. I am just going to have to wait it out. Over the Internet there are places like BBC One that stream the races over the Internet after the original broadcast. But if you are anywhere else other than Briton then you are out of luck, you just get a screen telling you the service is unavailable in your area!

I can almost guarantee that people will start to use their ISP to get their television, and that places like Hulu will be the new online cable TV provider. I just hope that the Cell companies will put that one under the rug.

I am just hoping that Schumacher starts doing better! If not, I hope Massa and Vettle kick the Arrogant Alonso to the back of the pack!

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I've got Direct TV and I'm fine with it.I rarely ever watch TV online unless I miss a show that didn't record ( or a show I don't get at all on Direct TV )

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I must say I watch TV on the internet or at least programs youtube and shorts every day. I watch Bill Marr, and a lot of commentary shows on the web almost every day. For some I just watch it on the web, for other such as Jay Leno or David Letterman or even SNL I see a specific thing that interests me and I watch just that short or part of the program. I also check in on things on shows I watch like Survivor which have specific web content. Either way I watch I would say at least an hour of programming daily on the web sometimes (pretty frequently)considerably more.

I can definitely see this as a very valid form of getting my TV as more and more programs are also available on the web. It is just way more convenient to not have to keep a network schedule, but pop to it when I can or want to do so.

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All i say about hulu is you have to have a very fast internet connection!

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LOL hulu is nice, its not blocked at my school xD. When ever i have a sub i just go watch some shows...

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So what you are saying is that our taxes go towards students being able to go to school and watch TV on our dime? Why don't we just pay for y'all to go to the movies as well, maybe Disney world!

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That would be awesome Animator! Wanna send those money over to my house instead? I would have a great time! :P.

When you have a sub you just sit around anyways so does it matter? The computers are alwasy on and going on there doesn't stop anyone from learning as its a sub and they don't teach, they just watch the students so they don't go crazy...

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Substitute \Sub"stit"ute\, n. [L. substitutus, p. p. of
     substituere to put under, put in the place of; sub under +
     statuere to put, place: cf. F. substitut. 
     One who, or that which, is substituted or put in the place of
     another; one who acts for another; that which stands in lieu
     of something else; specifically (Mil.), a person who enlists
     for military service in the place of a conscript or drafted
     man.

They are supposed to take on the duties of the teacher and actually teach. That is what the tax dollars are paying for. It shouldn't be a glorified babysitter. The Internet connections are also there for educational purposes, not to watch sponge bob while you have no teacher.
 
I guess when you get a job and start paying taxes and they start to take out 60% for federal funding to go to silly things you might start to ask yourself why.
 
It should be the other way around, if students aren't learning then taxpayers should be getting that money returned for frivolous usage. SO if that is the case and everyone is sitting around watching TV in school and not learning, then the kids should be paying for our taxes and the taxes on our cable bills as well :P

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In a world where people like to multitask, it doesn't surprise me that people are turning towards the internet to watch TV content. Some are willing to sacrifice HD quality for a cheaper alternative. Soon or later, businesses will find a way to make a profit out of this phenomenon. It is still new now...but as weeks and months pass by, regulations will be enforced that will force people to pay for services online in order to watch their favorite TV shows. However, it can backfire because of a precedent. Businesses must develop a profitable model that will help gain revenue. Otherwise, all will be lost. For example, newspaper companies failed to develop a sustainable model that will help earn them revenue for their businesses. Majority of newspapers can be read online with free of charge. This is why you see a lot of buyouts, and cuts on budgets and jobs. Not too long ago, a Colorado newspaper company shut down after being in business for over 50 years. From a business perspective, I think it's going to be very interesting on how consumers would respond to paying to watch TV online.

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