Cable TV Industry Analysis

I. Introduction

The dominant form of entertainment media in the U.S. for decades was cable television. However, now as technological innovations have revolutionized all aspects of consumer lifestyle, so too has it changed the way people seek entertainment. This has resulted in an entirely new industry altogether, video streaming. This is largely beneficial to consumers because it gives them control over their own preferences and time constraints that the cable TV industry just can not compete with. The industry for subscription-based streaming video on demand (SVOD) is interesting to study because it is a relatively new innovation, however it has skyrocketed to become a multi-billion dollar industry.

II. Basic Conditions

History:

The streaming

With the firms primarily uploading pre-existing content such as currently airing television shows, the products cycle through a stagnant period where there is a waiting period between releases of content such as a new season of a series. So, given the nature of this type of content, the cycle is often seasonal in terms of releases of new content. The firms in the industry each create original content as well such as movies or TV series, which are similar to cable series which release seasons throughout the year.

Each firm has their own type of characteristics when it comes to the product offered. The product offered is a monthly subscription service that allows instant access to an online library of movies, and TV shows. Along with the product being a subscription service the firms also offer more choices by having tiered services where there are more benefits to buying a higher tiered service or less benefits for the lower

Within the industry consumers can choose among the top firms; Netflix, Hulu Plus, or Amazon Prime Video. Each of these firms present relatively identical platforms however the variations between them revolve primarily around content, but also subscription price. Outside of the industry the substitutes are the cable services which the leading firms are; Spectrum TV, Directv, and Comcast. There are also substitute goods that have a place in both of these markets by a product extension from the cable subscription market. Through the cable subscribers there are services such as HBO and Showtime, which offer more exclusive content. In extension to those added programs there are services offered by them that mimic a streaming service like HBO Go, or Showtime