$200 Per Month For Pay TV: Insanity -- Or Not?
Will consumers really pay the $200 monthly rate for pay TV predicted for 2020 by the NPD Group? The notion first "seems like insanity" for both consumers and cable companies, writes Stacey Higginbotham.
But with competition between streaming video on demand and premium TV suppliers heating up, "we are witnessing the first steps toward the creation of a combined pay-TV and broadband bundle that gives consumers most of the TV they want on demand and encourages them to avoid going to the outside Web," writes Higginbotham.
"If done quickly, consumers, who are just discovering how pleasant (and economical) it can be to watch TV via broadband using over-the-top services such as Netflix or Hulu, will be lulled back into complacency and will still view their pay-TV and broadband subscriptions as necessary."