`Cord Nevers' Disrupt Cable Providers' Economy

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Sept. 18 (Bloomberg) -- Bloomberg News' Edmund Lee talks with Betty Lu about the growing number of "cord nevers" or people who refuse to sign up for cable television and instead rely on the streaming of television shows on the internet. He speaks on Bloomberg Television's "In The Loop."

-- ed lee.

We have heard about cord cutters.

These are young people.

Young people who were typically a few years out of college.

They are like do i really need to pay for this?

The cable industry is not gaining subscribers at the rate they used to.

That tells us there are a lot of people not signing up for paid tv would make get out of college.

No real hard numbers on how many are out there.

All the evidence points to there simply are not as many people signing up as they used to.

I am assuming comcast, time warner cable and other operators are pretty worried about this.

They have been worried for years.

They say it is the economy that is hurt, the reason people are not signing up as much.

The truth of it is, i think there is a lot of nuance in terms of people not signing up as much and people dropping cable subscription.

They are trying to find out better ways to improve the business.

One of the ways is to increase internet subscribers.

Internet -delivered television is on the rise.

It is not as if people are shifting.

Do we see that inverse relationship?

When looking at netflix, 30 million mark for a couple of years.

This business does not exist before.

They are shifting the budget.

People are looking for internet- delivered television because in some ways it is more convenient.

And watch it wherever i want.

There is a convenience factor that is attractive, and also lower cost.

What about the other players.

At&t denver eisen.

-- and verizon.

They came not too long after satellite.

They are basically still part of the pay-tv focus.

They pay for content the same way-they cost about the same.

They pay for content the same way cable companies do.

Competition, but not necessarily taking away too much from the satellite providers.

It is the internet guys where we have to wait to see how it shakes out.

There is not an internet player out there that pays for content the same way the rish -- dish, directv or at&t does.

They preserve the economics of the system.

Changes this and puts it on its head.

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


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