Cutting the cable TV cord


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From The Article:
The TV set and the Internet are getting married, and no one knows what the result of that union might be. In south St. Louis County, Jacob and Robin Metheny show one way that things might go — with worrisome implications for the pay-TV business.

The 30-something couple cut their AT&T U-verse service. "We were paying like $100 a month, and we were only watching three or four stations," said the husband.

So they went back to the days of rabbit ears and broadcast channels — but they kept their high-speed Internet connection and got a $9.99 monthly subscription to Netflix, which offers Internet viewing of hundreds of movies and TV reruns. They connect their two TVs to the Internet through a Blu-ray disc player and a Wii game console. Do they miss cable?

"Eh! It's no loss," says Jacob Metheny, adding the family only misses one show they can't currently get.

Their situation underscores the rapid fragmentation of the TV viewing market, where the rise of on-demand online entertainment threatens the longtime dominance of pay-television services. The digital revolution — which already has made mincemeat of the traditional models for selling intellectual property ranging from newspapers to music — now appears poised to undercut pay-TV providers such as Charter Communications. Based in Town and Country, Charter is the nation's fourth-largest cable company and employs 3,000 people locally and 17,000 total.
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