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Top 4 Reasons Why Cable TV Industry is Failing in 2020

Cable television has always held an important place in every Americans’ heart. Why?

Because it signifies a revolution in the home entertainment space, a revolution that is digital and offers a taste of the premium.

While that may be true, it also stands real that the cable TV industry is facing a demise as we speak.

Yes, smartphones are now the world’s new TV, and is going to be a contributing factor to decline in the cable tv industry.

In 2019, only 44% of the US households had a cable subscription, which is far less than the average, and the subscriber count is falling day by day.

This slow death of a beloved telecommunication medium has a number of reasons at its core.

If you want to find out exactly why people are saying goodbye to their cable companies left, right and center, then this article will help you see the complete picture. Check it out.

Unrealistic Costs

One of the most infuriating things about cable TV service is that as soon as its demand begins to rise, the providers get on their high horse and inflate the prices of their pay-tv plans much higher than what the average consumer can bear.

The advertised rates climb 3 – 4 percent as the year ends. Moreover, the add-on charges increase along with them in the shape of “regional sports fee” or “broadcast TV fee”.

For instance, Comcast recently bumped its broadcast TV fee from $10 to $15 per month, its basic TV package rate from $30 to $35 per month, and its cable modem rental charges to $14 per month – which you’ll have to pay even if you’re locked into a plan.

What’s worse is that the cable companies do not mention these subtle additions in the promotional plan, making the subscribers feel deceived.

It is quite hard to find a reliable cable company, along with the likes of Cox cable TV that supports price transparency even if it is expanding rates.

Also Read: What adverts of Nigerian brands looked like in the 1980s

Nonetheless, as the cable TV prices grow with the passing times, averaging at $60 – $80 per month for legacy plans, people are finding it hard to keep up with the hikes, and are now shifting their focus towards severing their ties with the cable companies.

Antiquated Cable Model

If you consider an average cable TV plan, you will find hundreds of channels included in the promised list, from A&E to TBN.

Because the channel count is so high in the market, providers usually set the cost on a steep curve too that goes upward as more channels are added.

This ‘carrot on a stick’ model does not reel in as many subscribers as cable companies hope to acquire. Instead, the rising rates dissuade people from choosing a cable.

Not only that, by now consumers have begun to realize that they don’t need to pay $200 for a plethora of extra TV channels that they don’t even watch.

Quantity is no longer the anthem of the day, and if cable companies do not recognize this trend, they cannot hope to survive in the distant future.


There is a multitude of startups and corporations in today’s world that pay cable companies to run their advertisements on air.

These commercials successfully manage to break the flow of entertainment, and it is not surprising to hear that people hate them downright.

They are too intrusive, too bombarding, and too irrelevant. Irrespective of that, cable broadcasting companies profit a lot from them, so they continue to run them.

To run away from these annoying advertisements and to watch TV seamlessly in a straight flow, a large number of consumers are now looking for alternatives to cable TV, and this does not bode well for the industry.

New Competitor Wave

News flash: “Cable companies face the threat of extinction from emerging competitors that promise to relieve people from the evils of cable.”

This fact is as real as climate change. Online streaming giants like Netflix, Amazon, HULU, Sling TV, Crackle, and others are becoming extremely popular among the younger generation because they offer a personalized TV watching experience without making people go bankrupt.

In other words, with a video streaming subscription, you will just have to pay $8 – $10 every month and watch TV how you like, wherever you like and on whichever device you like, as long as you have a strong internet connection.

There are no annoying commercials and no channel restrictions. Even big network corporations like HBO and FOX have started their own video subscription services to keep up with the changing times.

The Bottom Line

Cable’s increasing costs per month, pricey channel lineups, commercial-ridden broadcasting, and the rise of video streaming services are slowly leading towards the traditional industry’s demise.

However, with the right adjustments, the cable can yet live.

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