With streaming services like Netflix, Hulu Plus and Amazon Prime, it’s easy to see why cable companies like Verizon and Comcast are struggling to find a way to keep it’s customer base. The aforementioned services are all contract-free, much cheaper and far more convenient. They have also been around for at least five years and have continuously been growing in terms of the number of customers and in profit. Meanwhile Verizon and Comcast are adding new features to it’s lineup of options, but it’s still not enough to bring in more customers. That being said, below are four reasons why streaming services are killing the entertainment market.
If this wasn’t obvious enough, price is a major factor that customers will take into account when purchasing any product or service. When it comes to entertainment, most people would prefer to pay less and still gain a lot of content. To break it down, Netflix starts at $9.99, Hulu Plus is $7.99 and Amazon Prime is $10.99. Those are all of course the cheapest options and the premiums you pay monthly. Each service has it’s own pros and cons, but the fact is all of them are cheaper than Verizon and Comcast, yet they still bring you the shows you want to watch. It’s pretty clear to see why customers find online streaming the better and smarter choice, especially when you’re on a budget.
On top of already having relatively cheap prices, these streaming services also allow you to watch your favorite shows and movies on the go. You can pretty much watch it on any internet connected device, whether it’s your smart TV, Blu-Ray player, smartphone or gaming console, it’s really easy to find a way to watch your favorite content. Compare that to Verizon and Comcast which limits you to watching content on a TV and it’s not nearly as flexible.
As the streaming market gained more popularity big name shows and movies have been made by such companies and have received good ratings. Shows like House of Cards, Luke Cage and Orange is the New Black are some of the original and exclusive shows that can be found only on Netflix. Cable TV offers enjoyable shows like How To Get Away With Murder, but for the most part they can also be found in these streaming services.
People hate contracts. They don’t want to be bound to an agreement and then have to pay a fee to leave. This is part of the reason why cell phone carriers got rid of contracts. It gives more freedom to the customer. Netflix, Hulu Plus and Amazon Prime are all contract-free. You pay a monthly premium and cancel whenever you want for no extra free. People like this because they’re in control. They can choose when they want to cut the cords. Cable companies don’t offer the same experience. For some people who know they won’t leave, it might not matter, but I think not having a contract still feels better and that could be another reason why people are choosing streaming services over cable companies.
There’s not necessarily anything wrong with cable TV. It gives you access to a host of channels and it is certainly diverse in that sense, but some times too much is too much. Most customers don’t need all those channels. They really only need a handful to watch the shows they love. Since that’s the case, they find that paying a monthly fee is far better and cheaper. It gives them exactly what they want and when they want it. Perhaps cable TV’s biggest advantage is live sports games, but even those can be found on local channels for free. It’s sad to see such companies struggle to compete, but like Blockbuster and Hollywood Video, if you fail to stay competitive and embrace change, you will be left behind. That’s exactly what’s happening with Verizon and Comcast and I wouldn’t be surprised to see them no longer offer cable TV in the near future. Instead, they’ll be focusing on what they’re good at, internet.