Cutting the Cord: How Internet TV is Disrupting the Cable and Satellite Industry


The design, production, launch, and operation of satellites for a variety of uses, including telecommunications, television and radio transmission, weather forecasting, and navigation, constitute the satellite industry. Fixed satellite services (FSS) and mobile satellite services (MSS) are the two primary areas of the market (MSS).

The process of "cutting the cord" refers to individuals cancelling their traditional cable or satellite television subscriptions and instead accessing their favourite programming through internet-based streaming services. The cable and satellite businesses are being significantly impacted by this change in consumer behaviour.

Reasons for the disruption in satellite industry 

The growing accessibility and affordability of high-speed internet are significant factors in this disruption. Increasingly more homes now have access to internet speeds that are quick enough to broadcast high-quality video thanks to the development of fibre optic technology. This has made it possible for customers to use streaming services like Netflix , Hulu, and Amazon Prime Video  to access a large range of programming selections. These services provide a large selection of programming at a lesser price than standard cable or satellite bundles, including well-known network and cable shows, original material, and movies.

The rise of "thin bundle" choices offered by streaming services is another factor contributing to the disruption. Instead of being compelled to pay for a huge bundle of channels they don't watch, these are smaller, more flexible packages that let customers choose only the channels they wish to pay for. Sling TV, DirecTV Now , YouTube TV , Hulu + Live TV etc. are a few examples. Customers who are dissatisfied with the expensive standard cable and satellite packages and the limited channel selection will find this especially intriguing.

Additionally, one of the main draws for customers of streaming services is ease. They can access content on a range of gadgets, such as smartphones, tablets, and smart TVs, and on their own terms. Customers now find it simpler to fit their TV watching into their hectic schedules because of this flexibility. They can watch the programs they missed at their convenience or relive their favourite series. Additionally, personalised suggestions based on viewers' viewing histories are another feature that streaming services offer, making it simpler for viewers to identify new content that they might enjoy.

Additionally, live TV alternatives are now available on streaming sites, enabling customers to search the market. More and more customers will probably "cut the cord" and choose internet-based solutions as streaming services continue to advance and diversify their offerings. In an effort to keep their customer bases, cable and satellite providers now increasingly provide their own streaming services. Consumers will have access to better and more economical options thanks to the competition among streaming services.

Impact on the Satellite Industry

The satellite sector is being significantly impacted by the growth of internet-based streaming services, especially in the fixed satellite services (FSS) market. The demand for satellite-based television and radio broadcasts is falling as more and more people cut the cord and choose internet-based solutions. Due to their reliance on the sale of satellite capacity to other businesses and organisations for television and radio broadcasts, enterprises that operate in the FSS segment are seeing a reduction in revenue.

Additionally, more people are able to use streaming services, especially in isolated and rural locations, thanks to the expanding availability and affordability of high-speed internet. As a result, these regions require less satellite-based internet connectivity, which has an even greater effect on the FSS market.

The growth of internet-based streaming services has less of an influence on the mobile satellite services (MSS) industry. The MSS category still sees considerable demand for its services, which include satellite-based mobile communications, maritime and aviation navigation, and emergency and disaster relief.


Overall, the satellite industry is facing challenges as traditional revenue streams are declining and it is facing competition from terrestrial and fibre-optic networks. To stay competitive, companies in the satellite industry are focusing on developing new technologies and services such as high-throughput satellites, providing broadband internet services to unserved and underserved areas, and providing IoT connectivity.

Companies in the satellite sector are concentrating on creating new products and services, such as high-throughput satellites, broadband internet services, and IoT connections, in order to remain competitive. The market is likely to alter as a result of the shifting environment, and businesses that can adapt to these changes with innovative solutions are probably going to succeed in the future.

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