Why Cable TV is Quickly Becoming a Relic of the Past

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Why Cable TV is Quickly Becoming a Relic of the Past
Evan Xie

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According to a new report in The Wall Street Journal, Disney plans to transition ESPN from a cable network into an internet streaming service. The project, internally codenamed “Flagship,” remains in its early stages, with Disney contacting partners and leagues to hammer out new licensing deals, should the entire network pivot from cable to the cloud.


In the short term, ESPN plans to launch the streaming service while keeping the cable network intact. But unlike ESPN+, the new streamer will no longer serve as a supplement to the flagship cable network; all original content and live games will be featured on both platforms. On a purely narrative side, this certainly represents the “end of an era” and a milestone in the entertainment industry’s gradual transition from linear television to streaming. But it could also, in a very real way, mean the end of the cable television industry as it has been known for decades.

ESPN is one of the most significant and popular cable networks, with exclusive access to a lot of high-profile sports and original programming like “SportsCenter.” It’s a key reason that millions of Americans have kept their cable subscriptions active to date. Without ESPN as an exclusive draw, it’s likely that many of these consumers will opt to finally cut the cord and move their TV viewing entirely over to streaming services.

Though Cable’s Losing Ground, It’s Not Dead Yet

YouTube launched in 2005, and Netflix first unveiled its “watch instantly” streaming option in 2007. That same year, Hulu arrived as an major ad-supported streaming service backed by legit entertainment and media companies like NBC and NewsCorp (which still owned Fox). By 2008, Amazon rebranded its native video platform as “Amazon Video on Demand.” For the first time, a multitude of original TV shows and films – not just user-generated content but mainstream Hollywood studio-backed productions – were available online and on-demand, without a cable subscription. This was the point when “cord-cutting” first entered the national lexicon.

Though the term has long-since entered everyday, common use, and over 47 million Americans have indeed cut the cord and canceled their cable subscriptions, we still haven’t really come close to actually leaving cable TV behind entirely. According to Nielsen, streaming viewership only surpassed overall cable viewing in the US for the very first time in July of 2022. Between March 27 and April 30 of this year, cable still accounted for 30% of overall TV viewing in the US.

Streaming shows and platforms soak up a lot of the press and attention, which can distract from the reality that a majority of Americans – particularly members of older generations – on the whole watch more network and basic cable shows than anything on Apple TV+ or Peacock. This cultural disconnect was highlighted on social media earlier this month, when a clip from the popular ABC medical drama series “The Good Doctor” went viral on social media. While cord-cutters who’ve long been ignoring network TV dramas in favor of critical favorites and streaming originals had no idea the long-running show even existed before clips popped up on Twitter, it’s a long-standing popular favorite for the Disney-owned network that’s now in its sixth season. The show actually hit a Season 6 viewership high in April with 3.7 million viewers.

Meanwhile, on basic cable, Paramount’s troubled “Yellowstone” ranks among the most popular TV series in the country. Around 16 million people tuned in for the Season 5 premiere back in November, making it 2022’s most-watched TV episode across all platforms. According to the Social Security Administration, the fastest-growing baby name in the US is “Dutton,” after the show’s ranch-owning protagonists. (This is why Paramount is so desperate to keep the franchise alive, despite the reluctance of former star Kevin Costner.)

But Signs Are Not Looking Good

Still, it’s not exactly smooth sailing for the cable industry. Streaming has always posed an existential challenge to cable and satellite on a conceptual level. But as Advertising-based Video on Demand (AVOD) and Subscription Video on Demand (SVOD) platforms continue to improve and offer a wider range of content, it gets increasingly difficult to continue making the case for hanging on to cable subscriptions.

Additionally, overall TV ad spending will sink by an estimated 5% in the US this year, and it’s hitting cable the hardest. AMC Networks reported a 16% revenue slump in late 2022 due to the advertising slide. The company has been unable to make up for its revenue losses via subscription streaming platforms like AMC+ and Shudder; it’s new plan is to join the FAST revolution and put ads on AMC+. Income from Disney’s TV networks is also down. ESPN revenue fell to $1.8 billion in the most recent quarter, from $2.8 billion during the same period one year earlier.

Unlike network TV or streaming services, which are moving forward with overall confidence that, eventually, the market will heat up again and advertisers will return, there’s generally less confidence that the cable’s former sponsors will ever come back en masse. Many of those ad buyers will likely move over to ad-supported streaming platforms instead, with rapidly-growing FAST platforms like Pluto, Roku Channel, Freevee, and Tubi reaching more and more homes through smart TVs and devices like Roku and Amazon’s Fire TV.

In another side of trouble on the horizon for cable lovers, US broadband operator Wide Open West (or WOW!) announced plans this month to eliminate cable service entirely for its 117,000 customers. The company will instead provide access to YouTube TV as a cable replacement, while freeing up the additional bandwidth for its ISP. Should other, larger cable providers begin following suit, that could genuinely mean the actual death of cable.

Still, nothing is certain, and most media and entertainment CEOs have hesitated to actually look ahead to the permanent end of cable TV. When he returned as Disney’s CEO in late 2022, Bob Iger told investors that while the industry “is inevitably heading toward streaming,” he didn’t plan to “abandon the linear or the traditional platforms while they can still be a benefit to us and our shareholders.”

So it’s still just a bit too early to begin publishing cable TV’s obituary. But getting one started and keeping it on deck, just in case, might not be the worst idea. - Lon Harris


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⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

🔦 Spotlight

Happy Friday Los Angeles,

The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

For updates or more event information, visit the official Tech Week calendar.


🤝 Venture Deals

LA Companies

  • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

LA Venture Funds
  • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
  • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

    Download the dot.LA App

    🌴🧑‍💻 Your Guide to LA Tech Week 2024

    🔦 Spotlight

    Happy Friday Los Angeles,

    As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


    What to Look Forward To

    Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

    Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

    Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

    Plan your week with the daily lineup, organized by location for easy navigation:

    For updates or more event information, visit the official Tech Week calendar.

    Enjoy LA Tech Week 2024!!


    🤝 Venture Deals

    LA Companies

    • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
    • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

      LA Venture Funds
      • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
      • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
      • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


        LA Exits

        • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

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        LA Tech Week 2024: Saturday-Sunday Event Lineup
        tech-week

        Here’s what’s happening during the closing weekend (Oct 19 - Oct 20) of LA Tech Week 2024! Events are organized by location so you can easily catch the sessions that interest you most.

        SATURDAY EVENTS

        BEVERLY HILLS

        12:00 PM

        • BIG Showcase (Invite Only):

        BIG Showcase (Invite Only)

        2:00 PM

        Light Dao

        Struck Capital, Seahorse Express

        EAGLE ROCK

        12:00 PM

        Sunrise Integration, Shopify

        EL SEGUNDO

        9:00 PM

        Administratum, Valar Atomics

        HOLLYWOOD

        10:00 AM

        Passes

        MALIBU

        6:00 PM

        • Malibu Beachfront Investors Networking & Wine Tasting:See Details

        Gaya Ventures

        MARINA DEL RAY

        6:00 PM

        • Awaken Your Spirit: A Journey of Transformation (Invite Only)

        Sagos Distro, Alma Wellness

        SANTA MONICA

        7:00 AM

        Founders Running Club

        8:30 AM

        Techstars

        9:00 AM

        Magic Mind

        StartupStarter, Inc., City of Santa Monica

        10:00 AM

        Gen She

        AI LA

        Crea, Barry's, Unsubscribe

        10:30 AM

        Plantologist

        11:30 AM

        • Pickleball Palooza (Invite Only)

        YouTube

        1:00 PM

        • Realfren Games: From strangers to an inner Realfren within 52 weekends: See Details

        Office for Humanity and Circuit Works

        • Talking blockchain technology with special guests: See Details

        LadyDayDao

        5:00 PM

        KARD, What's Plots

        THE VALLEY

        7:00 AM

        Camino5

        VENICE

        9:00 AM

        Westside Yogis

        11:00 AM

        Open App

        1:00 PM

        Ripe and Teddy's Hot House

        4:00 PM

        • Fashion Forward: How AI is Redefining the Fashion Industry: See Details

        VIAVIA, BNTO.RENT, ALMA.AI

        VIRTUAL

        11:00 AM

        BLCK UNICRN

        WEST HOLLYWOOD

        7:00 PM

        Next Sequence

        SUNDAY EVENTS

        INGLEWOOD

        12:00 PM

        Entrepreneur Ventures, VCPE GROUPS

        PLAYA DEL RAY

        2:00 PM

        AI LA, DELL, NVIDIA

        SANTA MONICA

        10:00 AM

        • Women Founders, Cold Brew & Beach View, Rooftop: See Details

        Clutch Talent

        11:00 AM

        11DollarSunglasses.com, Less Litter Foundation

        12:00 PM

        Data in LA, Amplitude

        12:30 AM

        New Moon, Warner UK Innovations

        TOPANGA CANYON

        3:00 PM

        Dreamore

        VENICE

        8:00 AM

        • Surf session with founders, investors, creators: See Details

        Surfed Club, Bow Shock

        12:00 PM

        • Podcast Panel and Brunch: LA Tech Community Builders: See Details

        WeAreLATech.com, Blankspaces.com

        VIRTUAL

        2:00 PM

        BLCK UNICRN


        For updates or more event information, visit the official Tech Week calendar.

        Enjoy LA Tech Week 2024!


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