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Tuesday, July 23, 2013

Larry Magid: Households Abandoning Cable and Satellite for Streaming

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GET UPDATES FROM Larry Magid   96 Households Abandoning Cable and Satellite for Streaming Posted: 03/22/2013 1:57 am Follow , Netflix Streaming , Cable , Cord Cutting , Technology News
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My son and daughter, both in their 20s, are part of a growing group of people who have "cut the cord" and no longer watch video via broadcast, cable or satellite TV. The apartments they live in are among the more than five million U.S. homes that, according to a recent Nielsen study, have "zero TV." That's up from just over 2 million in 2007.

But as the report points out, zero TV doesn't mean zero video, nor does it mean that they never sit in front of a TV set. More than 75 percent of these homes still have at least one TV that's being used for DVDs, video games and -- in some cases -- watching Internet video.

Young adults more likely to have Zero TV

As you'd expect, the Nielsen study found that younger adults were much more likely to live in zero TV households than people over 44. Cost was a factor for 36 percent of these homes, but 31 percent of these non-TV households cited "lack of interest." Just as many in my generation jettisoned their antennas in favor of cable, many younger adults are dropping cable or satellite in favor of Internet TV.

My wife and I don't fit into this zero-TV demographic. We have a satellite dish on our roof to beam in live news, special events like the Oscars and Super Bowl and the occasional sitcom, TV drama or American Idol show. But we find ourselves spending a lot less time watching broadcast programs and a lot more watching online video from Netflix, Amazon Prime, HBO GO and other sources.

Streaming

We have Roku boxes on our TVs to stream content in high definition on our big living room TV or the smaller sets in our exercise room and bedroom. Roku boxes, which start at $50, are small devices that connect to a wired or wireless home network and plug into a TV, giving you access to nearly 100 channels, including Netflix, Amazon, Hulu Plus, HBO GO, CNet, Disney, NBA Game Time, Al Jazeera English, Blockbuster On Demand and others that I had never heard of. Roku doesn't charge any monthly fees, but some channels do. Game consoles also stream Internet video as do some Blu-ray players.

One thing I like about Netflix, Amazon Prime and a few of some other channels is the ability to stream old TV shows that I can watch sequentially at my own pace. My wife and I, for example are almost done watching all five seasons of Alias. We also devoured all 75 episodes of Friday Night Lights and I'm reliving The West Wing. I've also been known to watch an occasional episode of shows from my youth, such as Alfred Hitchcock Presents, Rockford Files and, purely for the nostalgia value, an occasional episode of Leave It to Beaver.

But streaming isn't just about movies and old TV shows. Netflix is taking a cue from HBO and Showtime by producing its own original content. We watched all 13 episodes of House of Cards, a political drama that debuted this year. Breaking from TV tradition, Netflix released the entire series at once, so viewers could watch them at their own pace. Based on what I saw on Twitter and Facebook, I'm not the only one who watched several episodes per evening rather than having to wait a week between shows as is typical of broadcast and cable networks. When searching for the show, I also came across the original BBC version -- also on Netflix -- which I liked as much as the American adaptation.

Another thing I like about streaming is that I can watch these shows on multiple devices. Sometimes we watch them on our Internet-connected TV, but I also watch them on my laptop when traveling or when I want to sit in the backyard. I also watch shows on my iPad mini, my Kindle Fire HD and a variety of Android tablets. And even though watching video on a smartphone isn't an ideal experience, I've done it on iPhone and Android phones simply because it was convenient, such as when I find myself with a little spare time and not near a laptop or tablet. My daughter often watches video on her phone when she's at the gym, though she has to be careful to stay within her data plan. My Sprint iPhone has unlimited data so I have no qualms using it to watch video.

HBO understands the value of streaming and is making its content available not just on PCs and mobile devices but on Rokus and other Internet streaming services. Yet it's still wedded to the cable and satellite industries. To watch HBO GO, you have to enter your user ID and password from AT&T U-verse, Dish, Time Warner Cable, Xfinity or other participating providers. But it's only a matter of time before content packagers like HBO come to the realization that they can make more money by going directly to consumers.

And, speaking of direct, we may also see more examples of content creators -- the producers, directors, writers and crew that actually make the programs -- figuring out that they too can go directly to the public.

This post first appeared in the San Jose Mercury News and on LarrysWorld.com

 

Follow Larry Magid on Twitter:www.twitter.com/larrymagid

FOLLOW TECH 68k   Get Alerts NetflixMy son and daughter, both in their 20s, are part of a growing group of people who have "cut the cord" and no longer watch video via broadcast, cable or satellite TV. The apartments they live in are am...My son and daughter, both in their 20s, are part of a growing group of people who have "cut the cord" and no longer watch video via broadcast, cable or satellite TV. The apartments they live in are am...     Comments7Pending Comments0 View FAQ Previewing Your Comment. This comment has not yet been posted You have exceeded your word limit by    words. Please click the "Edit" button and shorten your comment.

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of our newest badge: Community Curator. View All Recency |  Popularity wanderer12184 Fans 4 minutes ago ( 1:29 PM)I dumped cable\satelite well over a year and half ago, I am 54, and pretty much do Netflix and DVDs\BR. Have a PC hooked up as well but find that Netflix keeps me busy enough I really don't need too much else.wanderer12: I dumped cable\satelite well over a year and half ago,http://www.huffingtonpost.com/social/wanderer12/my-son-and-daughter-both_b_2929749_239090285.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments… This user has chosen to opt out of the Badges program KPinSEA229 Fans 28 minutes ago ( 1:05 PM)I'm old enough to remember our family's first color TV.

And if my condo dues didn't come with basic cable, I'd have cut the cord. All my premium TV content comes as a stream.KPinSEA: I'm old enough to remember our family's first color TV.http://www.huffingtonpost.com/social/KPinSEA/my-son-and-daughter-both_b_2929749_239083130.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments… photoHUFFPOST SUPER USEREdwardMRoche84 Fans 2 hours ago (11:54 AM)We disconnected from cable several years ago, and life improved.EdwardMRoche: We disconnected from cable several years ago, and life improved.http://www.huffingtonpost.com/social/EdwardMRoche/my-son-and-daughter-both_b_2929749_239062497.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments… photoHUFFPOST SUPER USEREdwardMRoche84 Fans 2 hours ago (11:53 AM)Streaming is much cheaper, has more variety, and is more controllable. Cable is an obsolete grotesque monster that has learned to gobble up far more money than it is worth. The Internet is the world's largest cable TV system. Why pay when you can get it for free?EdwardMRoche: Streaming is much cheaper, has more variety, and is morehttp://www.huffingtonpost.com/social/EdwardMRoche/my-son-and-daughter-both_b_2929749_239062212.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments… alamacTHC54 Fans 3 hours ago (10:56 AM)The corporatist media, most fundamentally embodied in the giant television networks CBS, NBC, ABC and in particular FOX, are principally a propaganda network promoting a Matrix-style reality where global warming doesn't exist, the best way to handle drug addiction is to create the world's largest prison system, the destruction of Iraq and Afghanistan is paid for by destroying Social Security, and the obscene lifestyles of the uber-rich are paid for by the retirement programs of the shrinking middle class.

The Internet is the Red Pill that will wake us up from this corporatist nightmare--if it is allowed to continue to be free. This is why we must defend a free, accessible internet at all costs.

Cut the cord--save the planet!alamacTHC: The corporatist media, most fundamentally embodied in the giant televisionhttp://www.huffingtonpost.com/social/alamacTHC/my-son-and-daughter-both_b_2929749_239046072.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments… HUFFPOST SUPER USERrealitytrumpsbullTwo 'alves of coconut!1937 Fans 10 hours ago ( 3:55 AM)I'm just tired of unidirectional communications. The internet is bi-directional, send/receive. TV/radio, you sit/absorb. What else could you be doing, with those hours, and the money?realitytrumpsbull:

I'm just tired of unidirectional communications. The internet is bi-directional,http://www.huffingtonpost.com/social/realitytrumpsbull/my-son-and-daughter-both_b_2929749_238988035.htmlHistory |Permalink | photoHUFFPOST SUPER USERJ Zass Christ9 Fans 4 hours ago ( 9:14 AM)I agree with TV but considering there is a thing called a portable radio it is nice to have local stations with good content.

But then again this article could make the argument for defunding PBS and NPR since you don't need as much money as you would to maintain broadcast towers. : PJ_Zass_Christ: I agree with TV but considering there is a thinghttp://www.huffingtonpost.com/social/J_Zass_Christ/my-son-and-daughter-both_b_2929749_239019933.htmlHistory |Permalink |This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments…This comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. spinnerLoading comments…    new comment(s) on this entry — Click to refreshspinnerLoading comments… Most Popular Michele Bachmann Obamacare Bachmann: Repeal Obamacare Before It 'Literally Kills' People Keith Obrien Abuse Accuser Disgraced Cardinal Had Relationship With Accuser: Report Cheating Husband Billboard LOOK: A Wife's Revenge Against Her Cheating Husband? Jon Hamm Private Parts Jon Hamm's Private Parts Cause Stir On 'Mad Men' Set North West Kim Kanye They're Naming Their Baby WHAT?! Joe Mcnally Burj Khalifa LOOK: The Most Epic Photo Instagram Has Ever Seen American Eagle Skinny Skinny Jeans WATCH: These 'Skinny Skinny' Jeans Can't Be Real, Can They? Bill Oreilly Michele Bachmann WATCH: O'Reilly Goes After Bachmann Disney World Photo Captures Couple Years Before Th SERENDIPITY: Couple Captured In Disney World Photo Years Before They Got Married Tomas Young Letter Iraq Dying Iraq Veteran Eviscerates Bush, Cheney On War's 10th Anniversary Saxby Chambliss Gay Marriage GOP Senator: 'I'm Not Gay. So I'm Not Going To Marry One.' Ohio State Expert Picks For March Madness Kim Jong Un Daughter Did Rodman Just Reveal A North Korean State Secret? White House Petitions Logos Petition Suggests Lawmakers Should Wear Logos Of Financial Backers Michele Bachmann Cnn WATCH: Bachmann Tries To Flee CNN Reporter Will Portman Criticized Conservatives Go After Senator's Gay Son Vanessa Hudgens Threesome 'Spring Breakers' Threesome Caused 'So Much Anxiety' Kate Upton WATCH: Kate Upton Gets Asked To Prom And It's Pretty Amazing Josh Moore Man Says NJ Officials Attempted To Raid His Home Because Of This Photo Obama Away From Congress Obama Caught On Camera: 'Good To Get Away From Congress' Follow HuffPost Email Facebook Twitter Google Plus RSS Mobile HuffPost Daily Brief Technology Get top stories and blogs posts emailed to you each day.

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