Talk about cord-cutting.  Last week it was reported that cable TV subscribers are on the decline as more consumers are opting to pay for internet TV that comes with their internet connection.  And several companies are taking advantage of the trend, including Google, which recently launched their Google TV 2.0 update, posing another threat for cable TV.

Amazon and Netflix

These two companies are pushing for internet TV as Amazon signed a new deal with Disney-ABC Television Group, and Netflix renewed their deal with the same company.

Amazon will be streaming the following programs to Amazon Prime members for free: prior seasons of Grey’s Anatomy; all seasons of Lost; prior seasons of Phineas & Ferb; prior seasons of The Secret Life of the American Teenager; prior seasons of Marvel’s animated shows Spider-Man, X-Men Evolution, Thor & Loki: Blood Brothers and Iron Man: Extremis; all seasons of Greek; and all seasons of Felicity; while Netflix will be adding Desperate Housewives, Alias, Private Practice and Hannah Montana their offerings.

Amazon’s director of video content acquisition Brad Beale said, “We’re working hard to add even more selection for Kindle Fire customers and Prime members leading up to the holidays, and expect to have nearly 13,000 titles available in Prime instant video by early next year.”

The Amazon Prime Instant Video is available to Amazon Prime members who pay $79 a year for two-day shipping while those who will purchase a Kindle Fire will get a 30-day free trial of the Prime Instant Video with the hopes that the trial would entice users to subscribe.

As for Netflix, though they suffered some losses over the past few months because of a few bad calls, it’s not stopping them from pushing internet TV to its full capabilities.  They’re backup plan is to offer shows that can only be exclusively accessed with their service.  Though unofficial, it is estimated that Netflix’s library holds more than 17,000 movies and TV shows, much larger than Amazon’s library which only offers about 13,000 shows and movies.

“The bigger takeaway, I think, is that the content companies come out ahead,” said Tony Wible, a Janney Capital Markets analyst who covers Netflix. “Distribution is becoming more of a commodity, which allows those content companies to sell their content into more locations.”

Google TV and YouTube

But the interesting thing about the hype on internet TV is what’s happening on Google’s side of the fence.  They recently unveiled their Google TV update, but YouTube, which is also under Google’s management, recently unveiled their plans for their original channels.  It’s another way Google’s looking to leverage its many initiatives, with YouTube playing into its Google TV project, surely a long-standing goal for the company.

Google made two announcements last week: Google TV 2.0 update and YouTube’s 100 online video channels.  YouTube offers new programs from Madonna, Jay-Z, Ashton Kutcher, Shaquille O’Neal, Tony Hawk, Deepak Chopra, Rainn Wilson, Sofia Vergara and a lot more.  Most of the channels will be launched next year.

“This depth of content is something the Internet industry has lusted after for years,” and it could attract the attention of many brand advertisers, said David Cohen, an executive vice president at Universal McCann, a media-buying agency owned by Interpublic Group of Cos. “This is clearly the most audacious original programming initiative for the Internet, and it capitalizes on the trend of creating niche programming, thinking about people’s passions and creating communities around them,” he said.

With the push for internet TV or real-time entertainment, does this mean that traditional or cable TV would soon go out of business?  That’s the growing consensus, though several factors will have to fall into place if cable TV is really expected to go the way of the dinosaurs.  It’s part of an evolution, not necessarily a complete revolution in the way this industry operates.  Here we take a look at one step of that evolution–the future of social TV.