With usage of streaming services on the rise, many cable companies lost business as a result. Numbers have shown that only over the past year, America has had a seven percent increase in subscriptions to any streaming service, and this trend will only continue to rise. As a result, many people are finding themselves moving away from cable providers.

With people moving away from cable, companies like ESPN, who get paid $7.86 per subscription, have caused the typical TV bill to be over $100 and have led to the phenomenon known as “cord cutting.” This is when people move away from cable companies and move over to streaming services. Because of this, the companies that were getting paid from subscriptions are experiencing a significant drop in revenue. The loss has caused many to reduce budgets, forcing them to lay off employees.

With cable companies being required to pay companies per subscription, they have been unable to reduce their prices to compete with streaming services who are charging around $8.99 per/month and TV streaming services who charge around $35 per/month. However, with the TV streaming companies, the initial price covers only their basic package, and, to get all the channels you want, you have to pay more. For instance, companies like DirecTV NOW charge $70 per/month for their full package. One thing the cable companies have that TV streaming companies don’t is the usage of a DVR. You are unable to record shows and in order to watch what you want, it must be live. However, one way to go around this is by having a TV streaming service, like DirecTV Now, and also having a streaming service, like Netflix, to watch live TV and the shows you want, when you want, for a cheaper price than cable.

Due to the rise of streaming services, cable companies have been unable to compete and are quickly losing customers. This shift is quickly resulting the the death of cable and the creation of a new way to watch all your favorite shows. Unless cable companies can find a way to compete with these streaming companies, they will soon find themselves out of business.