Cord cutting a rising concern for pay-TV operators
September 21, 2016
One of the biggest challenges for pay-TV operators is figuring out exactly what customers want. On one hand, more and more are looking to cut the cord. On the other, more than half are interested in so-called “skinny bundles.”
According to the latest survey from Frank N. Magid Associates, 5.7 percent of consumers plan to cut the pay-TV cord this year, either canceling service altogether or not signing up for new service.
That compares to 3.8 percent who said the same last year, and 2 percent who said so back in 2011.
Not surprisingly, Millennials are even more likely to cut the cord. According to the survey, 9 percent of 18-34s plan to do so.
The main reason? Seventy percent of respondents said the reason they’d consider cutting the cord is because there is a large amount of content available through other on-demand outlets, such as Netflix or Hulu.
More than half consider skinny bundles
Magid also asked respondents about skinny bundles, cheaper and less abundant packages from pay-TV providers.
Just over half of respondents said they would be interested in such a plan. Among those, the average amount they’d be willing to spend is $48 per month.
The key, then, for the providers is to keep customers around, even if it means lower monthly fees for smaller packages. It beats the alternative, which is losing subscribers altogether.
“The pay TV companies will have to work hard to maintain their relationship with American consumers, through standard cable/satellite bundles, other services like internet access, and skinny bundles,” Magid Advisors president Mike Vorhaus said in a release.
“The competition is tough between traditional and new media providers of video content to consumers.”
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