Is Cable TV Tuning In Its Own Obsolescence?

Cable television may be in for a rude awakening from the dream-like hold it has managed to keep over consumers all these years. Recent content provider disputes among DirecTV and Viacom, along with legal decisions allowing websites like Aereo to stream broadcast TV, are putting the industry’s revenue model in serious risk.

Three factors are bringing this disruption to a head.

• First is the increasing friction between cable companies and content providers.
• The second is Aero -- it could do serious harm to broadcasters, who rely on cable affiliate fees to supplement advertising revenue. Cable providers could get hit, too, since customers may decide that they don’t need cable if they can watch and record broadcast TV shows without the big monthly bill.
• And of course, it doesn’t help that consumers consistently say they hate their cable companies.