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Pay TV, Pay Too Much

Pay TV is officially too expensive. At $120/month for a fairly basic Dish Network package, the situation in my household has officially become untenable. Cord-cutting, the act of bailing on Pay TV and moving to Internet content, has become the official new norm, and customer-losing telecommunications providers are faced with having to raise prices on the customers it keeps. The result? More cord-cutting. So am I considering cutting the cord?

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The trouble with cord-cutting is that good content on the web also costs money, and the pared down TV packages there offer a fraction of what traditional Pay TV offers. Netflix and Amazon have some good content, but the majority of the stuff we watch on the Internet is also on TV. It's all just "video entertainment content" after all. In other words, moving to the Internet might result in lower costs for me, but also in content that is far more fragmented than I would prefer. I like to have my sports and regular cable channels all in one place on one big screen. I can even have Netflix there if I want to pay even more than $120/month. And I don't really have time for Netflix. Let's face it. Cutting the cord simply isn't an option for me. 

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But Facebook and Apple will soon join Amazon and Netflix as additional content mediums to go along with the many dozens of "channels" we already have; and the legions of cord-cutters will grow. Eventually, Pay TV will be forced to change its model to address the creative destruction the industry is currently undergoing. Raising prices on existing customers is not a sound marketing strategy. This should result in a more streamlined product offering and hopefully far lower prices.

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I think that in the not-so-distant future, the content we see on both TV and the Internet will largely be the same content. It might not be long before Amazon, Netflix, and others enhance their traditional TV presence in a way similar to Amazon's heavy investment in the brick-and-mortar aspect of retail. Not many people saw that one coming. And so rather than believing in the imminent demise of Pay TV, it is perhaps more conservative to think that the two mediums, TV and the Internet, will converge into one seamless whole. 


Discussion: Do you think that the aforementioned scenario is likely?