Dish Network Chairman Admits “Cord Cutting” Is Real

Ask yourself this question: How many channels are there on my TV that i never watch? Probably lots. Probably hundreds. And guess what? You’re paying for all those channels you never watch in your dish or cable bundle.

For those new to the conversation, “cord cutting” is the term industry wonks like me have put on the process of consumers canceling their dish TV or cable TV and watching their TV content off the internet.

And it will happen once the majority of Americans learn to connect their TV to the internet and companies start offering channels “a la carte”. Pay only for the channels you want to watch.

So cord cutting would obviously be a big deal to dish and cable companies putting their business models in real peril similar to the record music industry. All of the heavy hitters in the industry thus far have been defiant saying cord cutting is exaggerated and won’t happen. People are set in their ways. They’re used to paying for TV and paying for a whole bunch of channels they never watch. Right. Just like people were used to paying for music CD’s. Just like people were used to paying for newspapers.

Then out of nowhere Chairman and CEO Charlie Ergen of Dish Network has broken from the rest of the dish and cable industry in finally admitting that “cord cutting” is real. Interesting. Why all of a sudden publicly admit what you have previously denied?

My guess is that he realizes that if his company continues to bury it’s head in the sand, they’ll go extinct. The dish companies and cable companies need to reinvent themselves.

 

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