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Cable television has always had a tried and true foe in satellite entertainment; when consumers were just too frustrated with their local monopolies and lack of choice, they turned to installing unsightly hardware on roofs and paying for questionable reception. The battle in viewing entertainment has been getting heavier, although not between the cable and satellite companies. Now the two have the entire Internet to face as customers are cutting their cords in favor of streaming video.

Despite the recent hype over cord cutting, market intelligence from Deloitte (News - Alert) predicts that in 2013, less than one percent of American cable subscribers will actually do the cutting, and those that do are driven to do so due to economic factors and changing TV watching habits. A quick headline search, however, makes it seem as though customers are ditching cable faster than a skydiver in free fall. But the pay TV market is a moving target and its variables change over time; subscribers hop on or drop off every quarter.

Even still, word on the street is the Internet is still going to be the contender that kicks cable TV to the curb. Predictions indicate that you’ll be able to watch pretty much anything so long as you have a connection and a TV. To some extent, we’re seeing this on a limited basis; services like Netflix and Hulu (News - Alert) offer popular shows and movies that stream right to TV sets and smart devices. The only subscriptions customers need are that of the actual streaming services and one to use data, like a broadband connection. Compared to cable bundles, these add up to a fraction of the cost.

Low-cost content providers like Netflix, which has done to Blockbuster and other video-rental chains what Amazon did to brick-and-mortar bookstores, have been increasingly disruptive influences in the cord cutting culture, up to and including producing their own branded programming.

While the threat is still not exactly at code red, what the pay TV services need to watch out for is the killer app for cable cutters. The killer app might come in the form of being able to access live sports outside of MLB (News - Alert) or the NFL, or perhaps big TV premiers for popular shows. It doesn’t exist yet, but who’s to say these things are not in the works? As the battle continues between pay TV services and the entire Internet, one has to wonder who is going to finally come out as the entertainment du jour?

As for right now, cord cutting is nowhere near the existential threat it’s made out to be. Nielsen’s fourth-quarter cross-platform report counted more than 5 million "zero-TV" households in 2012, up from just over 2 million as recently as 2007. Those are small numbers. The TV household universe is approximately 110 million.

Programming is expensive. Netflix, Amazon Prime and Hulu Plus offer alluring alternatives, however they’re not killing cable. Not yet, anyway.