Are you familiar with the concept of Cord Cutting 2.0?
This is an extension of the idea from a bit more than a decade ago where people started to cancel their cable subscriptions in favor of the Internet along with streaming. The concept was simply that entertainment could be found online.
Of course, this was like switching deckchairs on the Titanic.
The cable companies lost customers for their television package but picked it up as people signed on for Internet service. Over time, the cost of that service increased to the point where many are paying what they were for cable a decade earlier.
Much was made of the cord cutting and how it affected companies such as Disney through its networks such as ESPN.
Now we are seeing another phase.
Cord Cutting 2.0: Mega Tech Unleashing Another Wave
The cable companies are losing more customers, this time for its Internet service.
At the core of this is the option for other forms of service. Elon Musk and Starlink is adding quarterly to its constellation of satellites. It is reported that Starlink passed 3 million customers.
Mobile phone companies in the United States such as Verizon and T-Mobile are seeing their 5G subscribers increasing. They are NOW offering home Internet service, providing two more competitors for the cable companies in most markets.
Not to be left out, [Amazon is working on getting deeper into the Internet game.
Amazon’s new Internet service will reach both businesses and homes. Amazon will start testing this year with some businesses and hopes to have it rolling out in select areas next year to paying customers.
The cable companies are not going to disappear overnight. However, we are seeing attacks from every side. Internet plus a service such as what Google is offering will suffice for most people. There are also options such as Pluto and Tubi which provide live channels.
A Total Industry Disruption
Technology companies know no limits. They do not focus upon select sectors. Instead, they believe they can keep expanding outwards, offering more options to people.
The streaming fights garner a great deal of attention. We see this causing massive changes within the industry. Hollywood is under fire and this is only getting started. New players are entering the sports game, with Amazon and Apple both offering games.
Now we see the infrastructure getting upended as new options enter the market. SpaceX and Amazon are doing things on a global basis. The mobile phone companies are already established in most markets. It is only a matter of then upgrading their systems and offering the services.
Of course, SpaceX, through Starlink, is going to offer Internet texting and, eventually, phone service. I would not be surprised if Amazon does not have the same intentions. This will affect the mobile phone companies.
We can expect bundling in the future.
In the United States, we now see cable, Internet, and home phone offered through the cable companies. The latter is an afterthought since most did away with that. This might provide some insight into what we will see in the future.
Perhaps our mobile phone service is nothing more than a single fee for Internet connection. What passes through is not relevant at that point.
Here is another example of how there is a major race taking place. This time, telecommunications is involved.
The fun is just getting stared.