Cord-Cutting Grows, But Not Big Threat To Nets

“Cord-cutting” of pay TV packages will still be a thorn to TV providers and TV networks -- but a small thorn at the moment.

Consumers surveyed by Frank N. Magid Associates says 3.7% of consumers are “extremely likely” to cut the cord. This is up from a 1.9% level five years ago.

Among younger consumers, the numbers are higher -- 7.1% of 25-34s say they are “extremely likely” not to buy traditional pay TV providers packages from cable, satellite, or telco companies.

The reason? Over-the-top services like Netflix, Hulu and Amazon, as well as other content on the Internet, give consumers plenty of content. Over three quarters of its respondents pointed to this season.

High cost was the next reason, with 30% of respondents citing this as a major reason.

In some related data, Magid also says 20% of those it has surveyed have “never” subscribed to a pay TV service. Also, 61% of consumers would likely buy a “skinny” package of TV where they can pick the channels they want.

Magid’s research came from 2,400 U.S. consumers, 8 to 64, matched to the U.S. Census, between July 30 and August 5 of this year. The survey averaged 26 minutes.

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6 comments about "Cord-Cutting Grows, But Not Big Threat To Nets".
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  1. Ed Papazian from Media Dynamics Inc, September 17, 2015 at 8:35 a.m.

    As a rule only some of those who say they will most likely do something---in this case cord cutting---- actually follow through. If we assume that 50% of the likely cord cutters take action, then it appears we will have to wait about 30 years before the complete "emancipation" of American TV audiences takes place----if it ever gets that far, of course.

  2. John Pappert from Great Plains TV network llc , September 17, 2015 at 9:48 a.m.

    Cord cutters cut the cable cord and find antenna to compliment the OTT device. Every time I read these articles I wonder why that fact isn't mentioned.  Check the growth of antenna sales. It tells the rest of the story. Broadcast networks are watched OTA when the cable cord is replaced with the antenna cord. 

  3. William Hughes from Arnold Aerospace, September 17, 2015 at 1:43 p.m.

    It wasn't the price of cable that tipped me over, but the commercials. Three things about commercials.

    1. The amount of Commercials aired during a show. When I was growing up, a show had eight to ten minutes of advertising an hour (Occaisionally 12 minutes, but whan that happened I'd stop watching that show because it wasobvious someone cut scenes out of that show). Today that amount has more than DOUBLED. Some channels actually have more commercials than shows! I actually read an article on the web where a representive of a network said they no longer show certain series because in order to air an hour-long show they'd either air it over a period of 90 minutes or cut 1/3 of the show to make it fit in the hour. Ever since I acquired a copy of The Ten Commandments on DVD I traditionally watch my copy each spring, timing it to start when ABC airs their copy of this movie. When my UNCUT copy ends, ABC still had 93 minutes to go. This was THE LEAST amount of time spent on commercials, and most likely more, since their version shows an "Edited for Television" sign after the opening credits end. Sorry ABC (and all other networks, OTA or Pay), but I have better things to do than endure more than 11/2 hours of commercials.

    2. The way products are presented. It seems advertisers don't believe yoiu can attract more flies with hone than you can with vinegar, because most of them present their ads in the most obnoxious manner possible. Yes, I know your product exists, but there wioll be icicles in Gehenna before I partake of your product (Which can most likely be obtained from a competitor for MUCH LESS because that company doesn't advertise as much as you do. Memo to Advertisers, LAY OFF THE VINEGAR!

    3. This was the last vstraw for me. Age-Inappropriate Commercials. Advertisors of such things as woman's hygiene products, sex pills, contraceptives and other "adult products" show no regard as to WHO is in front of the TV when their ad is shown, They don't care if they air them at times when chikldren are most likely be watching. Nine years ago I had the misfortune of seeing a sex pill commercial aired DURING A CHILDREN'S SHOW! That did it for me. I cancelled my subscription, and have since used the money I saved to acquire my programming via other means, mostly home video. Since 2006 I've accumulated enough programming on home video that's so huge it will take me, at the rate of four hours an evening over 30 years to watch them all! I watch PURE programming, and NOBODY butts in in order to obnoxiously peddle a product I'm not interested in purchasing.

    PS. Has anyone noticed that even though a certain event is still MORE THAN A YEAR away, they are already showing ads from people who hope you will cast your vote for them, or try to convince you that their opponut is the antichrist? Thank Heaven for Home Video (and for that manner CDs). Because of these, I don't have to cop3e with watching (or hearing) these ads!

  4. Peter Losh from Undisclosed , September 19, 2015 at 5:25 p.m.

    Here's another thing that's rarely mentioned in articles like these -- streaming devices are some of the best selling products on Amazon.com. I can tell you from personal experience that as people learn how easy it is to stream in high def to their TV sets, and begin to realize how much better and more affordable the content is, it dawns on them that it makes no sense to pay a premium for cable channels loaded with ads.

    it took me a year to get from initial streaming to cord cutting, but eventually the light bulb did go on.

  5. Peter Losh from Undisclosed replied, September 19, 2015 at 5:32 p.m.

    I'm with you -- the sheer volume of commercial interruptions, as much as anything else, drove me to streaming. I pay $4 extra on my Hulu account to avoid all ads and consider it money well spent.

    Adding to this, the quality of cable programming is so poor it's easy to forgo. I find far more interesting options on various streaming channels, which offer a more international and democratic approach where there are many voices and points of view -- and not just those of Comcast.

  6. Peter Losh from Undisclosed replied, September 19, 2015 at 5:35 p.m.

    The likelies become definites when they learn how easy and emancipating it is to stream content better suited to their tastes.

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