More 'Cord-Cheaters' Getting OTT Services

Straying from your TV service marriage? A new survey says a growing number of consumers are “cord-cheaters.” Video search/discovery company Digitalsmiths says cord-cheating refers to a trend by consumers to take over-the-top (OTT) services -- such as Netflix and Hulu Plus -- as an alternative to buying more services from their traditional pay-TV providers.

The study says 35% already have a OTT service, and 22.1% regularly use a third party pay-per-rental service. On the flip side, it says 74% have never purchased anything from a TV service from its video-on-demand offerings, and that 68% of smartphone and tablet owners have not downloaded their pay-TV service's app. Fourteen percent have already cut back on services, and another 27.5% are thinking about cutting more service on their cable/satellite/telco service in the next six months.

Overall, 4.3% of survey respondents plan to “cut” their cable/satellite service in the next six months -- so-called “cord-cutters.” Of those who are decreasing service, 47.2% of survey respondents say they have cut premium channels, while 12.3% eliminated premium sports packages and 38.7% reduced the overall level of cable/satellite service.

The survey was conducted with about 1,850 U.S. and Canada consumers, 18 years and older, in the second quarter of 2013.



3 comments about "More 'Cord-Cheaters' Getting OTT Services".
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  1. Kerry Hew from Conviva, September 3, 2013 at 3:11 p.m.

    "Cord-Cheaters" is a ridiculous term for this group. "Cheat" implies some kind of dishonesty. Choosing an OTT service is a marketplace decision made by the consumer.

  2. William James from Journal Media Group, September 4, 2013 at 9:40 a.m.

    I agree with Kerry Hew. There is no cheating involved with choosing a resource that is more economical. It is bad enough that you have to pay over $60.00 per month just to have decent access to the internet.

  3. James Smith from J. R. Smith Group, September 4, 2013 at 10:45 p.m.

    It's almost poetic. After the TWC/CBS situation and Kagan's rather shocking profile of video downgrades, it kind of makes you wonder what MSOs and the broadcast station groups and cable nets are doing in the "subscriber retention" marketing department. Asking for more money from flight-minded consumers is a very short-term doomed to fail strategy.

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