This Cable Company Is Going Out Of Business, And It Says YouTube TV Is To Blame

Having a subscription to YouTube TV is a lot like paying for cable. You gain access to a range of network stations like NBC, ABC, and CBS, along with numerous paid channels, and the option to pay for these stations as part of a larger bundle of channels. But YouTube TV offers several other benefits, too, such as the ability to watch movies and shows on multiple devices, offline viewing for when you don't have access to an internet connection (part of the 4K Plus bundle), and a few other great features. YouTube TV's pricing is so competitive that the platform is projected to have close to 12.6 million subscribers by the end of 2026, making it the largest paid TV distributor.

Thanks to this, the pressure has been felt by traditional cable companies like Comcast and Charter, as more homes and businesses continue to "cut the cord" and switch to streaming for their TV needs. This trickle-down effect is making it that much harder for smaller cable companies to stay in business. One unfortunate example is Cedar Falls Utilities (CFU), a cable TV provider based in Iowa. By October 11, 2026, the company will be discontinuing its cable service altogether. The main reason: CFU simply can't compete with streaming platforms like YouTube TV.

CFU has been pretty transparent about its decision to end cable service. The company doesn't want its customers to overspend, and was bold enough to admit that its own Basic Plus package with DVR subscribers would likely save around $40 by switching over to YouTube TV. CFU also cited the headache of licensing content as a mountain that's becoming too steep to summit. Moreover, with network owners imposing strict limitations on what can be viewed and where, it's nearly impossible for small cable providers to offer customers ways to watch TV outside of their homes and businesses. 

Then, there's the fact that many exclusive programs and special event broadcasts are now hosted by streaming services, with YouTube TV's NFL Sunday Ticket licensing being one of the best examples. Traditional cable TV isn't getting any cheaper, a reality further driven home by the fact that CFU will need to increase its Basic TV rates by $17 starting January 1, 2026. The company also plans to part ways with its WatchTVEverywhere streaming service, which gave customers access to network apps.

Cedar Falls Utilities isn't the only cable provider feeling the brunt of the digital age. In 2023, nearly 3.8 million subscribers cut the cord on services like Verizon, Comcast, Altice USA, and Dish. It's also been reported that in 2024, DirecTV said goodbye to close to 1.8 million subscribers. Fortunately, many cable companies also offer internet services, including CFU, which is especially important for subscribers living in rural communities that Iowa is known for.

Getting an internet connection to less accessible portions of the country isn't easy, though, and with competitive low-cost internet solutions like Starlink and Amazon's upcoming Project Kuiper providing a unique alternative via low-orbiting satellites, companies like CFU are going to have to incentivize web services as much as possible to keep clients happy. CFU is thinking a few steps ahead, though, and is already offering a $27.50 discount for three months of service on its FiberHome internet tier, lowering the cost of the service to $30 per month over that span of time.