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Cord-cutting is a growing phenomenon, and big cable has cause to be worried. The latest quarterly figures show that cable and satellite TV providers lost 1.1 million customers in the third quarter, more than double the 415,000 that vanished in the previous quarter.
Customers have long decried poor customer service and high prices as reasons for ditching cable. Then there was the adage "hundreds of channels, but nothing to watch." The dawn of streaming video several years ago accelerated the fall of cable, by offering consumers choices that simply didn't exist before.
A recent trend seems to show what customers really want -- cable in disguise.
Image source: Getty Images.
Premium channels
A recent announcement by streaming provider Roku (NASDAQ: ROKU) illustrates this growing phenomenon. The company revealed last week that beginning in late January, it would add premium channels to its existing lineup of more than 10,000 free (advertising-supported) movies and TV episodes. Consumers will have the option to buy subscriptions to cable channels like Showtime, Starz, and EPIX.
Roku is offering a number of options to encourage customers to add these top-tier channels. This includes the ability to browse all the available content for each provider before committing, free trials, single-click signups, and a single monthly bill from Roku for all the offerings. Roku also said that all its free, live, and premium content would be presented in a single channel, giving users an easy way to "browse, search, and watch a wide variety of entertainment without switching between multiple streaming channels."
A growing trend
Roku isn't the first provider to offer cord-cutters the option to add premium third-party cable channels to their favorite streaming service. In addition to being one of the top streaming providers, Amazon.com (NASDAQ: AMZN) gives its Prime members access to Amazon Channels, letting them sign up for a wide variety of popular cable favorites, including HBO, Showtime, and Starz, as well as a host of over-the-top streaming channels. At last count, those totaled 160 channels in the U.S. and more than 260 worldwide. The cost for these services is automatically charged to your default Amazon payment method. It's important to note that this service is only available to Prime subscribers.
DISH Network's (NASDAQ: DISH) Sling TV offers a so-called "skinny bundle," with plans starting at $25 per month. It gives consumers access to a package of 32 cable channels, including the Disney Channel, ESPN, CNN, HGTV, Cartoon Network, TBS, and TNT. Skinny bundles like this currently account for more than 11% of all cable subscriptions.