Friday, March 12, 2010

No More Cable!

With growth in technology, high stream internet, and the price of cable bills, millions of Americans are turning from cable boxes to the internet for their television fix. As a college student, I am very aware of the beautiful convenience of online-streams. In fact, later tonight I am going to watch a live college basketball game, free of charge, in the comfort of my dorm room (Rock Chalk Jayhawk!). But why the sudden shift and how do media outlets and producers feel about this cable exile?

An article in The New York Times stressed the recent decline of cable consumers that have made the switch to now being online television consumers. There are now a multitude of ways to get online news, television shows, sporting events, and even commercials. Sundance McClure, a Web developer from Lakeside, Calif., gave up cable as his bill was approaching $100 a month. Now, he watches hours of television on his PlayOn, a software download that cost him $40. His PlayOn streams internet content onto his Xbox360, which he connects to his television. This one-time $40 purchase allows him to watch almost any television show he desires.

How does this affect the television agencies? Aren’t they concerned for their dissipating viewers and will this affect how they make money? Maureen Huff, a spokeswoman for Time Warner Cable, says they are not concerned. The fad of television streams online is “not new.” Although cable bills are going up, the number of television users seems to be increasing. In the last three quarters of 2009, the multichannel video industry added 1.7 million new subscribers.

Many of the cord cutters (viewers turning from cable to internet) see themselves as “taking power away from cable companies”; they are doing this to help their families. Lauren Reinhold of Lawrence, Kan., cancelled her cable subscription to reduce the advertisements her children saw. Since television is the most prominent (and easy) way to see advertisements, Reinhold believes internet-streams will help regulate those seen by her children.

This sounds like a good idea, but what will happen if cable television gets shut down due to the internet? For one, the advertising industry will probably be hit hard. It is easier to regulate consumers—and their interests—on TV, and much harder online. If cable networks decline in popularity, advertising industries will have to widely expand their networks of use. However, this will endanger the views of parents like Reinhold.

In Mass Media class, we talked about how the advertising industry affects us in all sorts of places. We also discussed how the internet has altered the way consumers view commercials. There is no guarantee that audiences will actually see the commercial, since we are able to pause, mute, or click to a new window website. TiVo brought about some similar challenges for the advertising industry. Advertisers have already shifted to thirty second commercials and adapt to the changing industry. I have no doubt that the advertisers will find a way to make money and grab consumer’s attentions even in this new internet-savvy world; according to our text, they always have.

Personally, I like the idea of saving money and time with internet-streams. Americans are used to sitting on the couch for hours, watching nonsense and flipping through channels. Watching television online is harder and takes more effort from the viewer. It also allows the viewer to watch their desired show at a convenient time. As a college student on a campus where cable is not available, I am thankful for the Internet so can catch up on my shows—The Office and 24. Most importantly, though, I am able to cheer on my Kansas Jayhawks without leaving my room, as I skip commercials and check my email at the same time. And probably the most exciting part is that I can save money and still enjoy all the shows others are paying almost $100 to enjoy as well.

Betsy

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