Brouhaha in Broadcasting: The Cable Digital Transformation

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Factors Affecting the Cable Digital Transformation

Consumer shift toward streaming content

An increasing number of viewers are shifting to digital media due to the sheer array of options it presents. These web-based, over-the-top (OTT) media services such as Netflix and Amazon are negatively affecting the subscriber numbers for pay-TV. The move to streaming — known as “cord cutting” — is a growing trend. In 2010, there were 105 million customers with pay-TV; today eMarketer estimates that there are 74 million paying households and expects that number to drop another 10 million by 2023. Advertisers have taken note of this decline in cable subscribers and are increasingly shifting their dollars to digital channels to better target specific consumer segments.

Negative customer service perception

Although, like most industries, cable companies have upped their customer service game in recent years, ongoing jokes about “waiting for the cable guy” abound, and cablecos still consistently rank among the most disliked companies in consumer surveys.

Strategies to ensure a future of cable TV

For cable companies to position themselves for growth and compete with emerging technologies, they must embrace the digital revolution and focus on their unique advantages.

Provide digital-first experiences

Customers are the cable companies’ secret weapon, and they must be nurtured for their full potential to be leveraged. These customers demand the same seamless end-to-end digital experiences they have learned to expect from their bank and favorite retail store.

Monetize available customer data

Cable companies can leverage the available household data collected across all their digital platforms, including customer details, channel preferences, and watch list history. Analyzing this data will allow them to offer customized entertainment and other content to their customers at the most optimized price, further strengthening their relationship.

Become a smart-home player

The growing smart home market, projected to reach more than $495 billion by 2028, represents a new opportunity in the realm of cable digital transformation. Currently, cablecos have not made much headway into the smart home space. But considering their impressive customer reach, they are well-positioned to capitalize on their customer relationships to introduce smart home products and services to millions of their connected households.

Cable industry analysis — in conclusion

In today’s digital age, the cable industry has seen media production, distribution, and consumption, as well as their customers’ expectations for service, change drastically. Operators that can embrace the cable digital transformation and introduce new, customer-centric strategies have a much better chance at overcoming the unique challenges that potentially contribute to the cable TV cord cutting phenomenon. Providing customers with digital-first experiences, monetizing available customer data, and moving into the smart home space are all practical approaches that will help cablecos advance growth in the future of cable TV.



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