Henry Lai Professor Shapiro Television Management 9 October 2017 UPDATE THE REVOLUTION It’s almost American; the image of the family gathered around a huge cabinet box television set. For the mutli-channel era this was when traditional cable thrived. According to Amanda D. Lotz, the multi-channel era occurred with the introduction of technologies such as the remote control, video cassette player, and analog cable systems. This era marked a time when viewers had more choice over programs they desired. Network schedules no longer dictated when the viewer had to catch programing. Subscription based channels such as HBO emerged with no advertisements and the method for measuring audiences became the Nielsen People Meter. The introduction of this …show more content…
Operators used to perceive "cord cutters," those who cancelled TV subscriptions, a result of the 2008 recession but now they have been replaced by the "cord-nevers" who will not buy any television packages. Live television over the air has become a niche for reality TV, sports, reruns and newscasts. The reasons to maintain a cable subscription are to watch sports or high-quality subscription-based channels. 2013 marked a point where more people have reduced or eliminated their TV packages than increased. The main perpetrators of this are millennial consumers who rather be tied to a cable package, prefer to pick and choose the content they like. The higher costs and limited usage was the primary reason cited for cord cutting. The ability to watch what you want when you want is driving consumer choices. According to Ad-ology in September 2013, 63% of consumers are using streaming or on-demand …show more content…
By providing on-demand content and creating original shows, Netflix is forcing cable companies to change their business models. The success of Netflix's is the first step in the unbundling of cable. Netflix began as a website where people could rent DVDs online and get them through the mail. It competed with television for people's entertainment time, but it competed more directly with established physical rental locations such as Blockbuster. Netflix then came out with on-demand shows, which changed the way consumers got content as they were able to watch what they wanted, when they wanted. This innovation helped end the movie rental business and made it more important for cable companies to offer on-demand content. Soon, Netflix began competing with TV networks directly for original content. Netflix became a more attractive destination for showrunners and script writers because it offered upfront contracts to create an entire season or two. Netflix also started uploading entire seasons at once, in contrast to the traditional once-a-week programming model. This contributed to the binge watching culture that has developed. Many TV networks are now experimenting with releasing entire show seasons at once, even if it means sacrificing ad