Read the article about the cable tv. Are people dropping cable tv? Why? What implications does this have for investors? What investment advice would you give relative to the tv entertainment industry?
21 Comments
Sarah Brink
11/9/2010 09:12:48 am
A lot of people are starting to drop cable TV to cut costs. Instead of paying for both internet and cable, they are simply watching their TV on the internet and only paying for one. The implications for investors is that those who have invested in TV and cable companies are going to be facing a loss and those investing in internet companies will be receiving more money. Advice that i would give investors would be to invest in internet companies because they are making the most revenue. The TV companies are going to continue to go downhill and lose profit so the wise choice would be to stay away from TV companies that charge more and if you do want to invest in some TV in cable companies to invest in ones that charge less and that more people are subscribed to.
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Erin Wagner
11/9/2010 09:30:28 am
Yes, many people are dropping cable television for the easier, cheaper alternative of watching it online. Due to this drop in cable, investors will most likely lose a lot of money; for their profit will definitely be lower than that of before this time. It is even said to happen that entertainment businesses will lose money because of the possibility of online selling (like pirated music). So relative to the entertainment industry I would advise investors to, for now, take their investments out of cable television companies, and buy shares for the growing, replacing, internet companies.
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Kaylie Talbott
11/10/2010 11:29:54 am
These days, everything is available online. People no longer have to worry about missing their favorite TV show or movie, because they know it can easily be found on some website on the internet. This is going to become very dangerous for investors. With the public quickly gaining more access to free online entertainment, they will need television less and less. My advice to investors would be to get themselves away from cable companies, for they don't appear to have a high future.
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Gina Vosti
11/10/2010 01:01:34 pm
Many homes have begun dropping their cable television contracts. Cable television packages are expensive, and the internet provides alternative ways to view the same content for free. Investors will begin to lose money as the amount of cable subscribers drops. Investors should look into buying shares in internet and other entertainment technologies that replace cable. These markets are growing rapidly in contrast to the cable television market.
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Alison Greer
11/11/2010 02:58:35 am
As a result of new technologies, many homes are dropping cable television. New providers of television such as Netflix and other internet providers are less expensive and convenient. This has caused homes to drop their cable packages and switch over to these new technologies. Another factor that is causing more homes to drop cable is the high unemployment rate. More people are living together, so there are less individuals getting cable. The drop of people buying cable she signal investors to stop investing in cable companies such as Comcast because there business is not doing well in the competition with newer technologies, and their business may take a down turn. Instead, people should invest in the growing businesses of new entertainment technologies such as Netflix and Hulu which are prospering as people are switching over to these systems.
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Logan Santillano
11/11/2010 10:11:10 am
Cable TV is not a necessity for most, and it can easily be replaced by the internet, DVD's and all of the technology we have today. therefore, it makes perfect sense that in this recession, families are decieding to get rid of thier cable. instead of paying a huge amount of money every month to watch TV they now have the same access online, or through companies like Netflix or Hulu. i would suggest that cable companies step things up to save their customers, lowering prices or even more advertising would help. however, the future will only bring more online downloads and movies, so cable companies should think of ways to implement these arising technologies.
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Gabriela Fernandez
11/11/2010 11:43:24 am
People around the country are beginning to drop TV because the costs are becoming a little too much. People have begun to notice that it is much cheaper to rid of cable and simply have the internet and watch programs and movies off of that. They're getting rid of paying for two different bills, and economizing while settling for the beneficial internet which delivers the best of both worlds: TV and internet in one payment. All of this implies that investors who are currently investing in TV cable companies are going to see big losses as more and more people continue to switch to internet solely. As for those who have invested in the internet, they will begin to see more money in their company from the major amounts of people switching to the internet. For those who wich to invest, I would recommend for them to take the smart choice and invest in the internet. It offers both tv and internet and if signs are showing that increasing amount of people are switching, then this would be the most wise choice to invest in. They shouldn't invest in TV cable companies because all they will witness are losses. Although, if they do wish to invest in these for some odd reason, they should invest in a company that has more people who are subscribed to it, than to a company who is losing many many customer, because that just won't do you any good.
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Noel Escobedo
11/12/2010 01:48:55 am
Cable T.V. is not affordable for many people. Most of them have to deal with other bills such as Rent, PG&E, Food, Water and Clothing. Its most likely that they have to turn something down. If cable prices are going up, and internet is more affordable then they would choose to pay for internet. If internet gives you the same benefits of T.V.,then why should you pay for both of them.
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David Martinez
11/12/2010 03:07:20 am
People are dropping their basic cable tv because the prices are going up. another reason why they are dropping there Cable is because they are able to see the same shows on the internet. so instead of paying for both cable and internet, they drop cable and stay with the internet. with the easy accebility to tv on the internet, the cable companies are in trouble of getting their customers back.
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Dominic Trinchero
11/12/2010 03:33:23 am
prices of cable are far way to expensive for people to pay every month. the cause of internet use is cutting what peopel watch on television and watching more on the internet. this is a major loss for cable because customers will be hard to get back once lost.
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Malin Armstead
11/12/2010 03:52:57 am
I agree with Dominic that prices are much to expensive for people to pay, especially in this recession. It makes loads of sence to simply order Netflicks or watch whatever you want on Hulu or another website. Those are much cheaper and hulu is even free. Anyone who would invest in the cable companies will soon realize that it was a mistake and they will lose more money than they would make.
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yanet tobon
11/12/2010 04:33:47 am
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Melani Whitley
11/12/2010 04:50:50 am
Cable TV is very expensive right now. And people are dropping it because you can watch online now. This is very dangerous for the investors; for people are going to watch their shows online and stop watching actual tv less and less. My advice would be to not invest in cable tv anymore because they onviously arent doing well amd dont have a high future.
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Max Northrop
11/12/2010 06:20:05 am
People are all about saving money with the economy down. One way of cutting cost was by giving up the luxury of Cable and just paying for internet, they have even created a cable you can plug your computer to your TV and play your shows. Investors beware of cable TV because each of those companies now and in the future will drop prices trying to persuade people to buy TV. I really don’t have any advice except that the price of cable should go down but because the price is so high people will wait it out until TV is basically free.
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Shelby Zumwalt
11/12/2010 10:39:11 am
Many people are dropping cable tv because the cost of it is becoming more and more expensive. Also because there are ways to view it, like through the internet for free. Due to this drop in cable prices the cable companys will be struggling. Also many of the entertainment business will be losing money to online businesses. I would advise the investors to take their investments out of the cable companies and replace them for shares in internet.
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Kayla Horne
11/12/2010 12:24:04 pm
People are dropping cable TV because there are cheaper alternative ways to watch their favorite shows without paying too much. And in this economy everyone is triyng to save money every way they can. Netflix, Blockbuster, Hulu and the internet are many ways that are cheaper. Also with netflix and the other ways, you can choose what you want to watch instead of looking for things to watch that you dont really want to. If you invest in Netflix or Hulu this can be good for you, however if you have bought stock in Comcast or Direct TV this could pose as a problem for you for they wont last for too long with the competition. However, Netflix doesnt have the news or sports channels that you can watch on Cable TV therefore when peoples favorite sports are in season, the cable TV businesses will be in luck, for you cant watch the superbowl on Netflix, and it just isnt the same watching it on the internet off of YouTube. So it can go both ways because they both have their pros and cons.
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Tino Corro
11/12/2010 12:27:22 pm
People are dropping cable TV, but I don’t believe the main reason is because the internet provides TV services such as Netflix. I agree with Sanford Bernstein analyst, Craig Moffett, that it is due to the expensive prices of cable TV. The economy is still suffering financially and it affects all companies. What the cable companies must understand is losing subscribers far more than months before can be normal today. Cable companies are probably used to profiting a lot. They are just experiencing the downs of our economy, but they don’t get that. This does danger the investors of cable TV, because as people begin to “cord-cutt” than there is no benefit. I believe the best thing to do is hold on for some time until the economy begins to stable as before. TV is an invention that has been around for many years, and it will begin to evolve, just not today.
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Nadia Harvey
11/12/2010 01:37:10 pm
The price of cable T.V. has gone through the roof because fewer people are using it. Which causes more customers to discontinue their use of cable. The ever expanding, ever evolving Internet is increasingly becoming more efficient, and provides just as many, if not more, services than cable does. Therefore, interest in cable is decreasing at a steady rate. This proves that investors should most definitely steer clear of investing in cable stock. In reference to the T.V. entertainment industry, investing in a company like Netflix would be a success, whereas investing in cable wouldn't.
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Alora Horne
11/12/2010 01:48:32 pm
Many people are dropping cable because it is expensive and Netflix is totally awesome. Lets face it, cable has no more than 5 good channels and I can watch my favorite shows online so there is no reason to keep paying for cable. The only thing I will miss is the Superbowl. As for investors, they should stay away from cable and expensive internet providers because the way the economy is going, even if it is getting better, is not the wisest choice. In conclusion, the age of cable is nearing the end and Netflix is taking over.
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Julia Smith
11/12/2010 01:58:27 pm
People are now unsubscribing to cable because there are now cheaper and easier ways to watch movies and TV shows via sattellite and internet. Many people are dropping there cable subscriptions, which means investors shouldn't invest in cable, for they will be losing money rather than gaining it. I would advise investors to get an interest in sattellite and internet because more and more people are subscribing to companies like Netflix and Hulu, which would make them a lot more money than investing in cable.
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Emily Gouveia
11/12/2010 03:33:39 pm
A lot of people now at this time are dropping cable and moving onto more affordable ways to watch tv shows and movies. Investors in cable and even satellite television will suffer with new sites such as Hulu and Netflix. I would suggest that the television entertainment industry make changes to their companies in order to attract more subscribers. I would also suggest that investors put more of their focus on highly profitable satellite and internet television.
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