A MOTLEY FOOL INVESTIGATIVE REPORT — OCTOBER 22, 2013
That is the title of Motley Fool's promotion about the three stocks they are touting. Following its list of the 6 Internet-disrupted and shrinking industries: newspaper industry, brokerage industry, book industry, record industry, travel planning industry, big box retail industry, it continues at: http://www.fool.com/video-alert/stock-advisor/sa-cabletv-so/?source=isaspodft0000928
People want what they want, when they want it, where they want it, and how they want it! And if we don't figure out a way to give it to them, they'll get it somewhere else.
"In the next two or three years, something's got to give.
At some point, the consumer is going to say enough is enough."
How to invest in the next great transformation of the Internet Age. And why it will be the BIGGEST of all.
Why Time magazine says "even billionaires get ideas from The Motley Fool ...
It was my daughter. When she said: But Dad, why would I need cable to watch TV?
As you've probably figured out by now, when I hinted about the 8th "dinosaur" that's about to be massively disrupted by the Internet, I was talking about the $2.2 trillion entertainment industry.
And more specifically, about the cable and satellite providers that many of us fork over more than two thousand dollars of our hard-earned money to, year after year. Even though we're seeing more ads and less real programming than ever...
Even though their customer service is so bad that according to the American Consumer Satisfaction Index, three of the top five "Most Hated Companies in America" are cable providers....
Even though they're getting sued left and right for deceptive hidden fees, customer privacy violations, and monopoly practices...
I mean, do you know anyone who actually likes their cable company? I sure don't.
But like any bad habit, they've been a hard one to break.
Until now...Because for everyone who LOVES television but HATES being forced into a raw deal, there's been a lot of good news lately...
• New Choices. In the past month, more than 200 billion videos were viewed online. And these videos include real, full-length TV shows like the ones my daughter likes. In fact, 83% of viewers aged 18-29 say they watch "some, most, or all of their shows online." And it's not just a youth phenomenon...more Americans are now watching videos online than on TV. 58% now say they no longer need their TV at all.
• New Gadgets. The Sony Playstation, Microsoft Xbox, and Samsung Smart TV can all pull your favorite TV shows directly from the Internet to your TV screen. So can the Boxee and the Roku, which cost around $100 at Wal-Mart. A new web-based service called Aereo even does it with no "box" at all.
• New Laws. On the morning of June 12, 2009 all television broadcast signals became digital instead of analog. That means TV shows are now downloadable "data" that we can watch conveniently on a computer, smartphone, or iPad. And, as The Wall Street Journal points out, it also means that the cable and satellite companies are keeping another "dirty secret"...they're hoping you won't realize that crystal-clear, high-definition viewing of "most key sporting events and every network TV show" takes nothing more than a new pair of digital rabbit ears!
• New Independence. According to Forrester Research, 45% of households will soon own a device that allows them to "time shift" their viewing (like a DVR). By skipping commercials and breaking out of the network programming schedule, viewers can make TV a personal experience instead of a mindless "broadcast." And 94% of us are also enriching that experience by multi-tasking with emails, text messages, cell phones, and social networks while we watch.
All these trends are starting to add up in a big way.
Because the percentage of households with a cable or satellite subscription is now declining for the first time in the history of television.
More than 3 million Americans have already cut the cord.
And according to Credit Suisse analyst Stefan Anninger, those "cord-cutters" are joined by a new group (like my daughter): the "cord-nevers." A full 83.1% of new households are choosing to live without pay-TV.
No wonder Business Insider reports that the cable/satellite industry is "starting to collapse"...