Final answer:
With fewer people subscribing and costs rising, we can expect an increase in the cost of cable TV subscriptions, while the availability and quality may not necessarily decrease due to the niche market and elasticity factors.
Step-by-step explanation:
In the market for cable TV, the decrease in subscribers coupled with an increase in the cost of providing services would generally suggest a couple of outcomes. First, since the drop in cable subscribers has had a larger impact, one can expect an increase in the cost of cable TV subscriptions. This is because as demand drops, and costs to provide the service increase, providers may raise prices to maintain their revenue and cover the higher expenses. However, because cable TV is a 'niche medium' with a few channels attracting a large viewership, the availability of cable TV may not necessarily decrease, but rather adapt to the new market conditions.
It's essential to consider the role of elasticity in this scenario. If cable TV is seen as a necessity with few substitutes, the price could rise without a significant drop in subscribers. However, the text notes the increase in competitors, which could mean that cable TV has become more elastic over time. Therefore, price increases might lead to subscriber loss as they find substitute services like streaming platforms.
Concerning the quality and quantity of providers: a decrease in quality is not a guaranteed result of a decrease in subscribers or increased costs. Quality depends on the business strategy and market competition. The number of providers might not increase due to high entry barriers and market saturation, which is evidenced by the mention of a large number of competitors already present in the market, including on-demand and streaming services.
The drop in cable subscribers and the increasing cost of providing cable TV will likely result in a decrease in availability, an increase in the cost of cable TV subscriptions, a decrease in the quality of cable TV programming, and an increase in the number of cable TV providers.