Check out an interesting article from Fortune about how Netflix is changing the concept of advertising with cable subscribers:
An important trend that will be widely discussed later this year is that TV viewers are ‘cutting the cord,’ and cancelling cable TV subscriptions. Today we heard that Netflix, by cutting out TV commercials, saves its customers about 160 hours per year from force-fed advertising as apposed to watching cable TV instead. For many viewers like us, those 160 hours of ad time seems more like 1,000 hours.
Ten years ago, who would have believed that viewers would actually pay a huge monthly fee to watch hours and hours of ads, combined with senseless political commentary from people who have no idea?
Cable TV is committing slow suicide. Many viewers at this moment are investigating how they can cut the cord but still be able to watch the 2-3 channels they usually watch. Cable TV is boring viewers to death. How is it possible to have thousands of guests discussing a few candidates, 24 hours a day, 7 days per week, and think that people still want to watch this circus?
People cancelling cable TV will be the next “big surprise” for investors. It’s happening now.