Who Are the `Cord Nevers' That Don't Pay for TV?

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Sept. 18 (Bloomberg) -- There's a new generation of tech-savvy, budget-conscious consumers who are taking advantage of the availability of high-speed Internet connections and the proliferation of smartphones, tablets, lower-cost TVs and other gadgets that make it easy to consume downloadable shows in a snap. Alex Sherman has more on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Once upon a time.

Yes, cable.

Comcast, directv, or none of it.

The impact of this from -- the impact of this will be explained.

What are you, a t? tv is changing -- what are you, 80? tv is changing.

Talk to me about these court never is.

There are a group of people out of college or maybe college age who have never subscribed to cable and potentially never will because they get to their viewing from netflix, amazon, youtube.

They pirate things.

They are able to cobble together another video for what they want to watch and they do not have to pay that $70, $80 a month bill.

A lot of them do not have high paying jobs yet.

This is a way to save money and get what they want still.

These demographics are interesting.

There is a sort of pain-in--what -- pain-in-the-butt el ement.

Do the makers of the boxes, apple, xbox, the cable box, are they trying to make it easier for these people to try to do that?

That is exactly what they want to happen.

Apple, microsoft.

The idea is to make it as simple as possible.

I think there are not too many 60 or 70 euros buying it.

The main question is not the technology.

It is how will they get the content.

They can get that stuff from netflix and hulu plus and put it all on there, but they are not getting live content.

They're not getting sports or broadcast channels.

They are not getting all of the other channels that are live streaming yet because those programmers are not selling them the content.

It lacks -- one of the functionalities of the net boxes they could circumvent the need for a cable box.

They would love it at the cable providers would provide xbox is in the home.

I suspect and understand from sources at microsoft that apple is trying to do the same thing with their product.

That is right.

If you make it easier, they are not going to sell your box.

That is the big fear.

Time warner cable has been out front saying, we are willing to play ball with you.

Time warner cable was in discussions with apple.

They said, we will put our app on your box.

But a lot of the other cable companies have said, don't really know that we want to do that quite yet because we fear the next step will be that you cut us out of the equation entirely.

Maybe that is why we didn't get an apple tv last week.

Good to see you in real life.

That is right.

Bloomberg east, here.

This text has been automatically generated. It may not be 100% accurate.


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