While it had been expected for several years now, the Leichtman Research Group reported earlier this month that broadband subscribers officially outnumber Cable TV subscribers.
With 49,915,000 people subscribing to High Speed Internet, that total outnumbers Cable TV people by just 5,000 households. But that number is going to continue to expand as more and more people find that Internet is tougher to live without than Cable TV. Plus, younger people are choosing to watch TV online through streaming services like Netflix, Hulu and Amazon.
As cord-cutting becomes a more popular decision over the next decade, and more people are bunching up traffic on the worldwide web, we can expect Internet costs to rise. This should offset the loss of Cable TV money providers are dealing with now.
Re/code’s Peter Kafka notes that Cable TV providers should now be known as Internet providers, that also happen to offer Cable TV, as opposed to the other way around. They’ll be “selling you access to data pipes, and pay TV will be one of the things you use those pipes for.”