Home entertainment has witnessed a complete transformation in the era of the internet. Conventional television viewing is not the same anymore, with most families switching to smart TVs and digital streaming.
According to a 2021 survey, 56% of viewers feel spoiled for choice with the sheer number of streaming services available. Also, 67% of them struggle to decide what to watch.
Cable companies have found a novel solution to simplify content distribution and keep it cost-effective for viewers. They offer streaming services and cable bundles to adapt to the shifting landscape of media consumption.
That’s the only way cable companies can survive and thrive in the era of live streaming and flexible content expectations.
We will highlight the evolution of cable companies as they adopt innovative streaming service bundles.
The Rise of Streaming Services
The current development in the cable TV landscape goes back to the growth of streaming services. The growth of streaming has been phenomenal in the US.
Did you know that 78% of American households subscribe to at least one streaming service? A 2023 report states that YouTube TV service is the biggest winner, surpassing 6 million subscribers as other live TV options decline.
Streaming platforms offer viewers the flexibility to watch content on-demand and break free from the cable model’s scheduled programming.
They also provide a vast library of TV shows, movies, and original content that is missing in the traditional cable packages. Not surprisingly, viewers want to transition to streaming platforms rather than stick with the cable model.
Cable Companies Making a Shift
The growing popularity of streaming is a real threat to the existence of cable companies in the US. However, most companies have quickly pivoted by embracing streaming rather than resisting it.
That is the only way to stay afloat amid the growing dominance of streaming services and declining subscriptions.
McKinsey notes that cable companies in the country have actually witnessed solid growth in recent years despite the popularity of streaming.
Strategic partnerships, acquisitions, and proprietary streaming platforms developed by streaming companies are some steps they have taken to thrive. The goal is to co-exist and integrate streaming services seamlessly into their infrastructure.
The Success of Streaming Service-Cable Bundles
Streaming service-cable bundles have become a winning strategy for cable companies looking to keep pace with streaming providers.
With these cable bundles, consumers get the best of both worlds- channel lineup and live programming of traditional cable and the on-demand, personalized streaming content.
WOW! notes that cost-effectiveness is another reason consumers love the bundling strategy. They can save hundreds of dollars every year with a bundle plan.
The best part is that they can access content on their TVs, computers, or mobile devices. Curated bundles match the needs of consumers and deliver a hybrid entertainment package. There couldn’t be a better strategy for cable companies to stay competitive.
Content Wars Get Stiffer
Content is a game-changer when it comes to getting and retaining viewer attention. Streaming service-cable bundles enable cable companies to provide more than access to a broad array of entertainment and news channels.
They can also invest in original programming, such as exclusive movies and shows, to make the audience stick.
According to statistics, a record 599 original comedies, dramas, and limited TV shows went on air on American broadcast and cable TV and streaming services in 2022.
The number shows how stiff the competition is when it comes to content. Not surprisingly, cable companies are keen to create a compelling content portfolio to compete with standalone streaming services.
High-End User Experience with Tech Integration
With streaming service-cable bundles gaining traction, cable companies focus more on enhancing the user experience with technological integration.
Some examples are creating user-friendly interfaces, incorporating streaming apps into cable set-top boxes, and creating seamless navigation between live TV and on-demand content.
A seamless user experience is the best way to provide a streamlined viewing experience to subscribers and retain them for the long haul. It is crucial in a competitive landscape with more than 400 cable companies in the American market.
Besides the internal competition, they also have to stay ahead of streaming services. High-end user experience is a key differentiator.
In conclusion, the advent of streaming service-cable bundles is an obvious outcome of the race against streaming providers.
For cable companies, offering these bundles was perhaps the only way to survive. However, they are more than a survival strategy because consumers prefer providers that give them more options with less spending.
Cable viewers are in a great place because they can explore hybrid bundles to match their preferences and budgets.