As time progresses, the number of TV options continues to expand. Most people have a good idea of what cable TV is all about as it has been popular for decades. However, there is some confusion as to what connected TV is and how it differs from cable TV. Let’s take a look at an accurate CTV definition and cable TV definition to clear up any potential confusion.
Cable TV and Connected TV are Delivered in Different Ways
The primary difference between cable TV and connected TV is the manner in which they transmit video content into homes. Connected TV is delivered into homes through the internet. Connected TV transmits streaming video by way of web-connected devices for viewer consumption. Alternatively, cable TV programming is transmitted through cable cords that connect cable boxes to TVs.
Content Differences
Cable TV offers packages with expansive channel lineups. Most cable TV providers offer minimal flexibility in terms of choosing between channels as consumers typically have only a couple packages to choose from. However, it is worth noting some cable TV providers such as Spectrum have partially pivoted in recent years, providing cable TV subscribers with the option of a-la-carte cable TV channels in which they select 10+ cable channels for a comparably low monthly rate.
Alternatively, connected TV piped into homes via the web provides specific programming that is sometimes more narrow in scope compared to that available through cable TV. Though Roku and Apple TV devices have expansive channel libraries with upwards of 1,600+ channels, other connected TV options have significantly fewer viewing options.
Some connected TV subscribers pay for the service for one or two specific shows that strike their fancy. However, it is worth noting some connected TV services such as Netflix have an expansive library of content that rivals the diversity of content available on cable TV. It is also worth mentioning that some connected TV services empower customers to watch content on-demand whereas cable TV offers live viewing as well as recording options with DVR technology.
Accessibility
The rise of connected TV is also partially attributable to its superior accessibility. It is comparably easy to access connected TVs from any location in the house using a Roku, Apple TV or other connected TV device. Cable TV is primarily accessible through a traditional TV connected to a cable box.
Advertising Differences
Businesses can advertise on both cable TV and connected TV. However, there are some differences in the context of each platform’s advertising opportunities.
Advertise on cable and you can select the specific program and time of your commercial’s airing if you are willing to pay a premium. However, some businesses will find it does not make sense to advertise on cable if the majority of the members of the viewing audience are not interested in the value offering touted in the commercial.
Though some cable TV programs are especially appealing to certain demographics that are interested in your products or services, this level of targeting is easier with connected TV.
CTV ads empower businesses to narrowly tailor an advertising campaign to specific demographics. Connected TV makes it easy for business owners, managers and marketers to control the airing of their ad in terms of frequency, timing and even perform the localized targeting of viewers in specific zip codes. Connected TV advertising is also growing in popularity as the ads are displayed during the live streaming of content, meaning viewers do not have the option of fast forwarding through the live feed.
Alternatively, cable TV subscribers can record shows using their DVR and fast forward through those programs, skipping the commercials and ultimately making a business’s investment in cable TV ads ineffective. For some businesses, the superior ad control, localized targeting, frequency capping, guaranteed delivery of ads and ability to target individual viewers in specific zip codes ultimately make advertising on connected TV that much more appealing than advertising on cable TV.
The Cost Difference
Take a look at the monthly cost of most cable TV packages and you will find they exceed the cost of the majority of connected TV options.
The flat rate advertised for cable TV might not seem that egregiously expensive at first glance yet it does not reflect the actual cost of watching programs on cable. The advertised rate for cable TV might not account for additional fees and costs tacked onto each monthly bill that have the potential to increase the service’s aggregate cost by an additional 10% to 20%.
Cable TV companies offer comparably low introductory rates then raise those rates by a significant margin after the first year of service (usually). It is also worth noting some cable TV providers force customers to lock into a contract for one or several years. If the contract is broken, the customer is forced to pay a contract termination fee for the early exit.
In comparison, most connected TV services do not lock customers into lengthy contracts characterized by arguably punitive fees for cancellation. This is a significant reason why we’re seeing a massive spike in ‘cord cutters,’ also known as people ditching cable in favor of more convenient and transparent CTV options.
Differences in Content
Part of the appeal of cable TV is the vast majority of channel packages have a litany of channels that range from sports to home-oriented content to dramas, science fiction, news and beyond.
However, some viewers are not interested in a wide array of viewing options. Those who only want to watch a certain type of programming such as cartoons are more likely to pay for a connected TV service such as Disney+ or Paramount+ that tailors content to a comparably narrow niche of viewers.
As an example, Disney+ provides viewers with the option of watching content that is child and family-oriented such as Pixar movies, Disney shows and movies, Star Wars and other non-news and non-sports content. Alternatively, an entire household containing family members with different viewing interests is likely to lean toward services with a broader variety of channels such as those featured in cable TV packages.
Ultimately, both options are similar, but very different. Cable TV is dwindling in popularity as connected TV is growing. This offers a great opportunity for advertisers to seize the moment and see what CTV has to offer.