Silicon Valley Insider posted an interesting article today about just when Comcast and other big cable/satellite providers need to worry about the boom in online video.  The article more or less says that some people are ditching their big cable/satellite bills and just getting their entertainment free from places like Hulu and the network websites.

Personally I almost never watch my favorite shows on TV.  I find various other ways to watch them on my computer, TV, or iPod.  But as the article states (or should I say, SEVERELY understates) cable still has one thing that the mainstream online sites lack: live content.

The most important live content of course is sports.  However these are also moving online.  ESPN360 offers a LOT of content for those who have access to it (the benefits of being in college, we get it for free on campus).  NBA and MLB games can be watched online for a price, while the NCAA tournament is streamed for free.

The news is another thing people mostly want live.  Noone really wants to get the news after its…new.  I’m not sure if any of the big news outlets stream their content live or not, but it wouldn’t be a bad idea.

Cable and satellite providers shouldn’t freak out yet, but they should definitely be worried.  The choice between watching a show when you want to watch it for free (plus the cost of an internet connection) or paying an $80 cable bill to watch it at a specific time is a pretty simple one.

At a time when finances are tight, people only want to pay for the things they really need or love.  And if these companies aren’t careful someone will come along and capitalize on that desire at their expense.