Twenty percent of Netflix users cancel their TV service

The price of pay-TV continues to rise at a fast pace, with many people paying over $100 a month just to watch TV shows. Although streaming video over the Internet has been around for awhile, legal access to movies and television shows has always been more difficult than just turning on your cable box and punching in a number on your remote control. As the prices continue to rise, and as those legal online options continue to improve, more and more people are cancelling their service to save money.

According to RapidTVNews, 20% of Netflix users are in the "cancel your TV subscription" camp. That number jumped up to 41% for the 30-44 age group, a number that is sure to concern the pay-TV companies. Unsurprisingly, the younger age groups were less likely to have Netflix streaming compared to the 30-44 age group. Many studies have suggested that the younger demographic would rather use a torrent to download their material because there's more variety, it's easier to do, and costs no money. In addition, the older age groups generally have more disposable income.

As time goes on, we'll see whether cable and satellite companies will be able to survive. We're already seeing landlines disappear as cell phones become the preferred method of communication. Companies like Comcast see the writing on the wall, which is why they've been expanding their service offerings to include things like home monitoring.

Source: RapidTVNews | Image courtesy of CuttingTheBills.com

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I live in the UK where we have a TV licence to pay for the BBC, but for the last 2 years I have not paid it as I been using Netflix only. since Netflix is not classed as TV, i don't have to pay the licence.

So the BBc have lost £140 or what ever it cost a year from me, because of Netflix and I know a few other people who are doing the same thing.

i have not had subscription Tv for over 5 years.

I don't use Netflix much nowadays, usually just download, even download my weekly TV shows. For streaming now, I prefer Navi-X. Much more selection than Netflix.

I used to watch a TV like a mad dog, until online 1080p videos was first available. If want to know a news, I just read news or watch about it online. Don't really use TV that much on my own, only for PC and Xbox.

But my family still uses the TV to watch news and other stuff tho.

I've have not had digital cable for well over 10 years. I never saw the need to spend so much money for hardly anything I might watch. I did have standard cable for a time, which was up to 99 channels (mostly non-HD) but I don't miss it.
I just have basic (local channels) for news and sports now but am close to cancelling. My internet will probably go up if I cancel so I leave it. I just don't watch much TV. It wastes so much time.
Ironically I work for a company that tries to get people signed up for cable service.

I'd cancel my service but I'm a big sports fan. Gotta have my NFL, NBA, College basketball and football. Until these are streamed live, I'm stuck paying these guys.

Shadowzz said,
Here in NL most sports are streamed live. But basic cable is like 10 bucks so quite cheap compared to US.
Must be nice. I wish. Maybe I should move to the NL. The women are also gorgeous. Standby as I check for real estate.............

JHBrown said,
Must be nice. I wish. Maybe I should move to the NL. The women are also gorgeous. Standby as I check for real estate.............

hehe, yes our living costs are much, much higher then it is to survive in the US. Including houses which start at 150grand for a 2 room appartment unless you prefer middle of nowhere's.
But internet wise we are ahead.... hooray i guess

Here in the UK the price for the leading TV company packages start at like £20 or something and end up costing stupid amounts for all channels. Even then you pay for some shows and movies still. No wonder really.

Be nice to see how piracy has dropped with the introduction of netflix.. (taking in account that the net has more users than a few years ago unlike most unfair bias studies).

Willing to bet piracy has dropped a little now more affordable options are about.

Movie and TV piracy is still rampant. People just don't make a big deal about it anymore.

Even Netflix exclusives are showing up on file-sharing sites. all episodes of both House of Cards and Orange is the New Black were on numerous torrents sites the day they were released.

timster said,
Movie and TV piracy is still rampant. People just don't make a big deal about it anymore.

Even Netflix exclusives are showing up on file-sharing sites. all episodes of both House of Cards and Orange is the New Black were on numerous torrents sites the day they were released.


Most of that TV piracy is from EU and not US due to us not even having the channels that air the shows, or are 2+ seasons behind.
And its either get spoilerd and lose interest or tub behind and try to avoid the internet and your american mates.

I don't pay for cavble tv, and I never will again so long as they require expensive premade bundles. I'm only interested in a few stations, mostly that are on the upgrade packages, and I won't pay $120 a month for some ginormous package 95% of which I will never use. It's insanely wasteful.

What I'm doing next month.

Moving to a place where I can get quality cable internet. Satellite TV - cancelled
Then just buy one of those android box devices to hook into the TV and then use netflix, internet, youtube etc on the TV we have.

You all forget one thing they just jack up your cost of your internet and lower your bandwidth meter and those rural area don't have those kind option

if you don't watch sports,you can pretty much buy/rent almost any tv show on cable,thats fine but for me for example,no possible way to ditch cable,because the following channels are impossible to get otherwise

Sportsnet
Sportsnet One
The Score/Sportsnet 360
TSN
TSN 2

And since I have to have cable, the other channels are very entertaining most of the time as well. Who doesn't love channel surfing?

Since I bought my HDTV, the first thing i did was hook up my desktop PC. This days most articles on the internet have a video link.

Youtube, vimeo, hulu, nextflix offers thousand of hours of video (but mostly Youtube). I only watch the news on regular TV when i'm eating with the family.

I wish I could cut my cable because it costs so much but I can not because of faulty internet my ISP has and I would hate to deal with it. Also, there is nothing new on Netflix added other than a lot of B movies and indie movies and as TV Series now they are way behind. Amazon Prime at the moment is stronger when it comes to TV Series but also lacks in movies. And as for HULU Plus BLAH! Nothing new or old when it comes to TV series they only have specific seasons only benefit with HULU Plus is Criterion movies.


So for me cutting cable is not a great idea but I do hate paying for cable & internet which cost me $200 and I am with Charter Communications one of the worse cable companies that lacks in new technology.

This is pretty much the situation in my household. We ditched cable last year because I refused to pay $110 per month to watch TV. Now we pay $50 for cable internet, $10 for Netflix and $10 for Hulu: faster internet and practically the same amount of tv content for $40 less a month.

This is why products like the XBox One will be important to the Cable/Satellite companies. The Cable/Satellite companies have run out of unique services to attract and retain subscribers. With the rise of services like Netflix, Hulu, and Amazon, there's less of an incentive to watch TV Live and be tied to the schedule of the broadcasters, offering a subsidized XBox One for $99 - $199 with a 2 year subscription might be a good enough reason for some to hold on and possibly attract others, but the real kicker will be new content for the XBox One and partnerships with TV Stations/Networks and Production studios that will require a live connection. Steven Speilberg and George Lucas as well as a number of Studio Execs are watching this carefully, because what they want most is to get people to watch content live again. There's alot that can be done with it for average people that aren't typical gamers. I watched the 2012 US Presidential debates on my XBox and we could answer poll questions every few minutes about the current topic which made it an engaging and truly informative experience. I could see News Shows, Competition shows where the audience immediately votes as opposed to calling in a vote, and even reality TV shows where the audience could vote on challenges, paths, or even jokes to play on people. It could make for interesting TV in a way that we don't have today.

For gamers, How would you like to have a Destiny TV series where if you are the top player for that week, your gamer tag get a guest shot on that week's episode? You could even end up winning a competition and have your particular character show up as a character in the Halo TV series that Steven Speilberg is making. You'd not only be imortalized as a gamer, EVERYONE who watches the show whether live or recorded will see your tag/character world wide! For wordsmiths, what about playing live with Jeopardy, Wheel of Fortune, whose line is it anyway, or some other game show and then even playing against the people on TV. You could even be skyped into the show. There's alot of potential on the XBox One that can't be done on the PS4 simply because of MS's partnerships and inclusion of the HDMI input. Even though the PS4/PS3/XBox 360/Wii U could stream the content via a specialized app, buffering and bandwidth constraints can throw off the interactivity. Keeping those streams in sync/gathering the input in a small 30 second - 1 minute window completely rules out Streaming over the internet. Using existing TV/Cable/Satellite networks infrastructure and capabilities will bypass this issue and leave all the bandwidth for data communications between the audience and the presenter. Its an elegent solution to a serious issue for making this work.

I'm not saying this is what will happen, but the possibilities are there and if MS really is partnering with networks/cable and satellite companies around the world it may work, but if MS does go this route with partnering with the Cable-Satellite companies, Content producers, and consumers, it will definitely outsell the PS4 since it will never be able to do what the XBox One can. After all If you add all of the Gen 7 console gamers up it may be 350 Million, but there are over 1.5 Billion Cable and satellite subscribers. Just think about it.

Edited by Drewidian, Jul 20 2013, 3:15pm :

Satellite companies have bandwidth meter so you idea of it beeing important to the Satellite companies is way off there and forget Xbone it will be use less on a Satellite Internet the lag is high you may as will just get dial-up internet.

The data will go through standard internet connections not through satellite transmission. So while you watch video from the satellite transmission, your broadband internet connection will be used to send and receive data to the presenter.

Hate to tell you this but it doesn't work like that with HughesNet, WildBlue or Exede Internet Satellite.

The same here. Wondering if people have the bandwidth to do so.
Ohh, many people says they are unable to get the net, so I'm thinking there is something behind it.
Plus, this would require a lot of work and a lots of people. Since they are making a Halo TV Series. I don't think they will make another series anytime soon due to the fact that 343 and Bungie has relation in Halo and Bungie would not want another show.

It would be nice though, if Netflix could get more Cable TV programs. I'm and Investigation Discover Network junkie and I still have to buy those off Xbox Video.

article
As time goes on, we'll see whether cable and satellite companies will be able to survive.

Indeed. To be honest, since I got my very first personal computer (my own, not family's) on 2008, I haven't watched T.V. on my home since then.

I just... don't find it necessary. God! I remember how relieved I was that I could literally watch any show I wanted WHENEVER I wanted. I wasn't consumed by the stress anymore of "x show airing at x time". Being not there in time. An unwanted event popped up...

Crap! There were many shows that aired late at night (10+ P.M.) or very late at morning (5 A.M.) and I couldn't watch them because of my parents' restrictions.

Also: No ads, no ads, no ads, no ads. Yes! No ads!

The only thing I worry about is momentaneous lags and connections drop downs... But for what is worth, I don't care... It is worth the shot.

Jose_49 said,

Crap! There were many shows that aired late at night (10+ P.M.) or very late at morning (5 A.M.) and I couldn't watch them because of my parents' restrictions.

I don't have such restriction. ;-) However, is s*ck that the better show are aired during 10pm-2am. May be TV is not for people that work.

Yeah, we did Hulu and Netflix and no cable. If you don't mind watching seasons a year or two behind, you could do Netflix only.

To be honest, the more friends I have canceling cable (or having kids), it's not like anyone is going to spoil a new season of a show anyway.

shockz said,
I would understand Hulu Plus, but netflix? It's not like yesterdays show is going to be on that....

It depends by your interests; I do not watch shows, only movies for example. The only reason I still have cable is for my daughter kids channels and, for me, History channel 1 and 2.

SHS said,
Just one problem with that dumb idea your high speed cable internet will also disappeared.

Don't use cable internet.

Fezmid said,
Never have pay TV? Or don't even have a television? Just curiuos.

I don't even own a TV I hook my xbox up to my 24" monitor. Though I wouldn't mind a bigger screen.

siah1214 said,

I don't even own a TV I hook my xbox up to my 24" monitor. Though I wouldn't mind a bigger screen.

I stopped watching broadcast TV a couple of year back. Strangely, it was shortly after I got my 50" plasma TV. I think coupled with me watching higher quality 1080p content and the ability to stream content, I didn't see any reason to pay for TV anymore.

That said, I do live in the UK. For most people, they'll continue to watch and pay for broadcast 'free' even, because of the 'requirement' for a TV license. It's not actually required, but only if you're watching a live broadcast TV channel, but for the majority of people they don't understand and certainly the BBC will try to take you to court if you don't own one of their licenses,, even if you don't own a TV set.

Still, haven't ever paid for another provide such as cable TV and don't intend to do so. I've seen enough of what friends and family pay for such a poor choice of channels. I'd rather save the £40+ a month and buy a few good bluray copies of movies or TV shows that I actually want to, and will watch vs all the crap they show repeatedly day in and day out across the same 200 channels.

Landlines are disappearing because telco's are pricing them out of the market. In Australia our Telcos charge $35 per month just to have the landline and NO CALLS included. This compares to $10 per month before they were privatised.

$35 per month will get you a mobile phone and $300 worth of calls from the same Telco. Any wonder people are ditching their landlines?

Landlines are still required for most broadband connections (DLS). As of 2012, 12% of broadband was cable, 14% was mobile (inc 3G), the rest is DSL.

Still, our cable provider in the UK doesn't half make it difficult to have a cable modem only package. Throwing 'free' landlines rental in with the deal. When they say free, it's actually £8 more... then having just the cable modem.

For £8, I can get quite a nice package on a mobile phone and that'll include inclusive data/calls. Probably saving more then the cost of most home owners landline bills. It's stupid things such as connection charges with landlines, for the first minute at 25pence, that really start to rack up the phone bill at the end of the month too.

But yeah, if more people had the choice and ability to get rid of their landline I'm sure they would in the UK.

dvb2000 said,
Landlines are disappearing because telco's are pricing them out of the market. In Australia our Telcos charge $35 per month just to have the landline and NO CALLS included. This compares to $10 per month before they were privatised.

$35 per month will get you a mobile phone and $300 worth of calls from the same Telco. Any wonder people are ditching their landlines?

In the case of Australia and New Zealand I would say that the move to mobile also is because it doesn't hamstring them to old regulations that were setup around the idea of regulating fixed lines when they were a monopoly under Telstra and Telecom New Zealand. In the case of New Zealand there is the 'kiwishare agreement' which required Telecom NZ not to charge for local calls in favour of a flat monthly price but with the roll out of UFB to the home I could see Telecom NZ move to naked broadband and offer mobile, pay television and broadband bundles.

sagum said,
Landlines are still required for most broadband connections (DLS). As of 2012, 12% of broadband was cable, 14% was mobile (inc 3G), the rest is DSL.

Still, our cable provider in the UK doesn't half make it difficult to have a cable modem only package. Throwing 'free' landlines rental in with the deal. When they say free, it's actually £8 more... then having just the cable modem.

For £8, I can get quite a nice package on a mobile phone and that'll include inclusive data/calls. Probably saving more then the cost of most home owners landline bills. It's stupid things such as connection charges with landlines, for the first minute at 25pence, that really start to rack up the phone bill at the end of the month too.

But yeah, if more people had the choice and ability to get rid of their landline I'm sure they would in the UK.

I ditched TV and my landline along time ago. I have my laptop permanently connected to my HD TV and stream a lot.

I'm with Virgin Media and have the 120mb service. Costs me £37 p/month. That's the only service I have with them now.