Cable Television Continues to Lose Ground to ... Old-Fashioned Antennas?
Early this year I pointed out the usage of television antennas was on the rise, posing a threat to cable names like Comcast (NASDAQ: CMCSA) and Charter (NASDAQ: CHTR) already fighting a strong cord-cutting movement. Although old-fashioned airwave broadcasts may not deliver a death blow to the linear cable business, they could certainly exacerbate the headaches on-demand alternatives like Netflix (NASDAQ: NFLX) and Walt Disney's (NYSE: DIS) Hulu are causing.
TV antennas may be doing more damage than I initially suggested, however, according to a recent survey performed by technology market research firm Parks Associates. Its poll, taken during the third quarter of last year, determined that among U.S. homes with a broadband internet connection -- homes capable of plugging into several free and low-cost streaming video venues -- 25% of them also used an aerial broadcast TV antenna. That's up from only 15% a year earlier.
Now, don't rush to an extreme assumption. Nearly 80% of these consumers still watch cable television and around 60% of these broadband subscribers stream video from a service like Hulu or Netflix; owning an antenna doesn't necessarily preclude the use of a second or third choice.
Source Fool.com
