Bad news for content providers and TV channels: cord-cutting is expected to increase by 33% for 2018.
Traditional cable firms will experience what shopping centers did the past two years because they didn’t adapt to social trends.
We have often said that the cable firms are committing suicide with their avalanche of commercials. Many times we shut off the TV, no matter what the program is because we get tired of the “pillow man,” or hearing about losing many pounds, or the latest prescription drug that may kill you.
Young people don’t care about watching 5-6 consecutive ads, followed by 5 minutes of content, followed by another 5-6 ads. They go to YouTube, Hulu, etc. and watch what they want to see.
Most people watch only 5-6 channels but are paying for several hundred they never watch. CEOs of these firms appear to be too busy improving their golf games to notice the shift in consumer demand.
As people cancel the TV service, cable firms will try to make up the losses by substantially increasing the price of an internet connection.
Only competition can change that. Unfortunately, former FCC policy eliminated competition in many cities. There is no choice.
The government should discourage mergers of these large firms and encourage competition. Write your member of Congress.
You can read more of our current analysis and forecasts on the global stock markets, bond markets, and global economies in our award-winning WELLINGTON LETTER, now in its 41st year.