Technologies are changing around the world, and cable television, which was indispensable a decade ago, is now on the verge of extinction thanks to new technologies.
Cablevision, a leading Internet provider on broadband recently announced two packages which are referred to as “cord cutter” packages. The Company intends to remove conventional cables from drawing rooms and replace them with cheaper ways to access television programs, as well as Internet.
The first package from Cablevision consists of a combination of Internet with adigital antenna. Cablevision is not charging for this digital antenna. Subscribers, however, are given a choice to include HBO NOW for additional costs, but these are again concessional rates. The package is identified as “Optimum Online Ultra 50” or “cord cutter package”. The internet service in this package facilitates data download of 50Mbps, and data upload of 25Mbps. The digital antenna given as complimentary in this bundle is “Mohu Leaf 50”. Effectively, theuser can watch television programs received “over-the-air” rather than through cables. Therefore, they do not need that cable box, nor do they have to pay any subscription for tv. This package also includes Wi-Fi service with optimum hotspots in the range of 1.1 million. The monthly charges for this bundle are approximately $44.90.
Cablevision’s second package also has Internet in it, but the speed of this Internet service is considerably lower when compared to the Internet in the first package. Other similarities with the first package include Wi-Fi service and digital antenna. This package includes Cablevision’s Wi-Fi voice. This package is identified as “Everyday low price” bundle. Monthly charges fixed for this package are approximately $35.
Apart from the monthly costs the consumers would have to pay $4.95 every month towards taxes and modem lease.
The CEO of the company noted that the new generation does not use cable tv. Instead, they opt for streaming television programs on Internet. In any event, subscription charges of cable TV are considerably higher. Therefore, consumers are likely to shift to new technologies sooner or later. In view of such impending migration, Cablevision has come up with these two bundles, which prima facie, seem to be considerably cheaper than conventional cable tv packages, because the monthly charges seem to be towards phone service and broadband charges.
Cablevision is not the first to become “cord cutter”. Verizon also announced such package recently. Cable industry has little choice but to adapt to the new trend. Former cable companies like HBO and ESPN are already offering streaming services.
