Why the Cable TV Industry Is Dying?
The Golden Age of Television and Its Decline
The television was a massive part of American pop culture. The evolution of TV shows and the way they were distributed defined generations, reflecting societal changes and technological advancements. However, in recent years, television seems to have lost much of its relevance. One might argue that TV is less significant today than ever before.
For many, the last time TV felt truly relevant was during the 2010s. At what was considered the peak of cable, there were 105 million pay-tv households. People were more invested in scripted and unscripted shows like Breaking Bad, The Walking Dead, Sherlock, The Daily Show with Jon Stewart and Deadliest Catch — all of which became cultural phenomena during that time.
The Shift to Digital Platforms
Today, platforms like YouTube, TikTok, video games, and podcasts have largely taken television’s place in the entertainment hierarchy. Where once keeping up with the latest TV shows was a common pastime, now many people, especially younger generations, engage with content through digital platforms.
The pandemic and the streaming wars accelerated the shift toward digital platforms. With everyone stuck inside their house, we had more time to get invested with shows that probably wouldn’t have caught on at other times, while simultaneously, every company was created their own shows for their newly launched streaming services. Ted Lasso, The Queen’s Gambit, Tiger King, Squid Game, The Boys and Bridgerton all stick out to me as shows connected to this era.
As one Redditor noted, in the past two years, the only TV content they consumed was the final season of Better Call Saul and Sports. Even the older generations, who once dominated the TV-watching demographic, now find themselves discussing their favorite YouTube channels rather than TV shows. It’s becoming increasingly common for people to forgo traditional TV entirely, opting instead for streaming services and social media.
Cable TV’s decline in the U.S. is starkly evident in the numbers. By 1980, 23% of households had cable TV, and by the late 1990s, that number had soared to 80%. However, as of 2023, that figure has plummeted to 56%, with Baby Boomers (ages between 60–78) making up 49% of those still watching. In contrast, only 34% of adults aged 18–29 continue to use cable TV.
Meanwhile, streaming services dominate, with approximately 83% of American households subscribing to one or more of the big three: Netflix, Amazon, or Hulu.
Fragmentation of Media Consumption
One of the most significant shifts in the media landscape is the fragmentation of entertainment consumption. Each demographic now has a plethora of content tailored specifically to them, resulting in the formation of micro-subcultures that rarely intersect.
Fourteen years ago, a typical office might have buzzed with discussions about the season finale of Breaking Bad. Today, however, media consumption is so varied that one person might be watching Summer House, another might be engrossed in The Bear, while others might prefer video games or crime thriller documentary like American Murder: Laci Peterson.
This fragmentation is also evident within households. The traditional experience of gathering as a family to watch a favorite TV show has become increasingly rare. Today, each family member is likely to have their own screen — be it a smartphone, iPad, or monitor — consuming content that is highly personalized to their tastes.
One can hardly remember the last time they sat down with their family to watch a TV show together, a far cry from the days when visiting my grandparents house everyday meant watching Cartoon Network or Disney Channel.
The Decline of Cable TV Subscribers
The numbers paint a bleak picture for the future of cable TV. In 2010, considered to be around the peak of cable, there were 105 million pay-TV households. Nine years ago, that number had already dropped to 94.9 million subscribers. By the end of 2024, it is expected to fall to just 70 million, marking a 26% decrease in revenue over nine years.
The Role of Sports in Prolonging Cable TV’s Lifespan
Despite the overall decline, sports remain a crucial lifeline for cable TV. NFL games consistently rank as the most-watched TV events each year. However, even this stronghold is under threat. The competition for sports broadcasting rights has become increasingly fierce and expensive. For instance, the NFL’s 11-year deal with CBS, NBC, Fox, ESPN, and Amazon, signed in 2021, was worth $110 billion, while the NBA’s 11-year deal with Disney, NBC, and Amazon was reported to be $76 billion.
However, with streaming giants like Amazon Prime and Netflix now entering the sports arena, the future of cable TV even in this domain is uncertain. While sports might currently be saving cable TV, the increasing influence of streaming services raises questions about how long this will last.
Traditionally, live sports have been one of the few areas where cable has maintained an edge over streaming services, largely due to the immediacy and communal experience of watching live events. However, platforms like Amazon Prime Video, Netflix and Apple TV+ are beginning to disrupt this dynamic, securing exclusive rights to major sports events and leagues.
Amazon’s acquisition of exclusive rights to Thursday Night Football or Apple’s deal with Major League Soccer and now Netflix will air two National Football League games this Christmas, and it has bought exclusive rights to Raw and other programming from World Wrestling Entertainment. These are the prime examples of this shift.
These deals are not just about broadcasting games; they’re about offering a more immersive and interactive experience, something that traditional cable struggles to compete with. Viewers now expect more than just passive watching — they want real-time stats, multi-camera angles, and even interactive features that streaming services are beginning to provide.
The Financial Strain on Cable Networks
Cable networks are also facing increased costs to secure content. As mentioned earlier, sports rights have become prohibitively expensive, with networks shelling out billions of dollars to secure broadcasting deals. While this might keep sports fans tethered to cable for now, it’s a risky strategy in the long term. If these networks are unable to pass on the costs to consumers — many of whom are already cutting the cord due to high prices — they may find themselves in an unsustainable position.
Moreover, the advertising revenue that once flowed steadily to cable networks is also drying up. Advertisers are shifting their budgets towards digital platforms, where they can target specific demographics more effectively and measure the impact of their campaigns with greater precision. As a result, cable networks are losing one of their primary revenue streams, making it even harder to stay afloat.
Is this the End of the Cable TV Era?
The decline of the cable TV industry is not just a result of technological advancements but also a reflection of broader cultural changes. Television, once a unifying force in American society, is becoming increasingly irrelevant as viewers shift towards digital platforms that offer greater choice and convenience. While sports might delay cable’s demise, the writing is on the wall: without significant adaptation, cable TV will continue to lose ground to streaming services, ultimately fading into the background of the entertainment industry.
The era where TV was a cornerstone of American life, with families gathering around to watch their favorite shows, is coming to an end. In its place, we have a fragmented media landscape where viewers are no longer bound by the schedules and limitations of traditional television. The question is no longer whether cable TV will survive, but how long it can hold on in a world that has already moved on.
