Cutting the Cable

It is no big secret that times are tough, financially, right now for many people in this country; sadly though it really doesn’t look like the times are going to see any dramatic improvement for much of these same people anytime too soon.

When our finances get stretched a little too thin we tend to start scrutinizing what all we are spending our money on — and some may also start look under the sofa cushions too.  We then start looking for things that we are paying for, but don’t need, and either cease paying for those things, or significantly cut back on them.  This only makes sense for us, and this then causes a snowball effect on through the economy at large.

If enough of us resort to cost cutting, then there is less money being spent on a myriad of things, which means that companies are seeing reduced revenues, which causes them to cut back on things like hiring, raises, production/workers hours, and they too start looking for ways to scrimp and save.

Take for example the cable/satellite TV industry.  For many people when they were examining their budgets, and looking for ways to cut costs and reign in spending, they saw how much they were spending on cable/satellite TV and decided that it was something that they could live without; so they did/are doing what is being called “cutting the cable.”

More and more people are doing this each year, and it is starting to have an impact on many of those service providers.  Satellite providers have threatened to drop entire networks from their lineups when those networks demand an increase in the amount of money they get from those providers.  Earlier this year Dish Network dropped AMC just before that network’s season premiere of its hit show “Breaking Bad,” and Viacom pulled ALL of its networks (parent company of Nickelodeon and Comedy Central, as well as others) from DirecTV due to a monetary dispute.  Eventually these issues tend to work their way out through some kind of negotiation and compromise; Dish Network eventually re-added AMC back to its lineup, and to the best of my knowledge Viacom has restored their networks to DirecTV; but it is an example of companies looking for ways to either make, or save, more money to maintain some level of profitability.

Nonetheless it does seem that we have reached the peak in how ubiquitous cable/satellite TV is, simply because it is something that more and more people are realizing that they can, in fact, live without; especially since most of our favorite television shows can be watched online now; and the fact that more and more TV’s are coming out of the box internet ready.  These factors, and more, should continue to lead an increasing number of people to “cut the cable;” which will continue to force more of the service providers and networks to engage in pricing battles and channel cancellations.

 

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