Is Cord-Cutting To Save On Entertainment Beginning To Wane -- Despite Inflation?

High-cost pay TV services are increasingly of less importance to cord-cutters.

Yes, you heard that right. Their focus now is on more available content for streamer platforms.

A study produced by HarrisX, released by MoffettNathanson Research and outlined in its first-quarter 2022 U.S SVOD report said the second-biggest reason for leaving pay TV behind is that “all the shows I currently watch are available on streaming services.”

This seems to infers some of these consumers might be future cord cutters -- those who have both pay TV and streaming services. This way, they can actually compare one with another -- in their own living rooms, on their own time, and figuring out what’s needed and what is their actual interest.

The hint here is that they will become cord-cutters in the future -- but slowly. Currently, pay TV has been losing 5% to 8% of its subscribers every year. While that is a steady drop, it isn’t yet a stampede.



Now all this comes while March has witnessed a nearly 9% hike in U.S. price inflation -- a number which has been soaring in the last few months.

Consumers are worried -- but not exactly about entertainment products and services -- pay TV subscriptions, streaming monthly fees, and perhaps theatrical movies-going ticket prices.

>It is more about gas and food prices. For example, car fuel prices have grown over 30% year over year, which can add several hundreds of dollars per month to a commuter who drives say 30 to 40 miles to work each way. That's a big deal.

This is not to say growing premium subscription prices -- the likes of Netflix ($15.49) and HBO Max ($14.99) at the top rungs -- won't cause subscribers to churn off and back on from those services. But think of other combinations as well -- especially among those three to four lower priced streaming platforms consumers typically hold on to on a monthly basis.

The bottom line line is that consumers still love their entertainment -- sometimes at any cost. The more basic necessities of life? That can be more pressing.

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