Film/TV
Study: Highest Level of Cord-Cutting on the Way (MESA)
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This year is seeing the highest level ever of consumers ready to cut their pay TV cord, without signing up again, according to a new report. Nearly 6% of those surveyed by research firm Frank N. Magid Associates said they were very likely to cut the cord in the next 12 months, up from 3.8% in 2015. In years passed, that percentage has never risen above 3%. For millennials the 2016 percentage jumps to 9%.
“There is a slow, slow drip of cancellations for the pay TV companies and it is growing every year,” said Mike Vorhaus, president of Magid Advisors. Some groups are even more likely to cut the cord such as millennials (18 to 34 years old) at 9%.”
The No. 1 culprit for pay TV abandonment? OTT. Seventy-five percent of respondents said OTT services are why they don’t need cable, satellite or telco services anymore. Over-the-air services came in at No. 2 at 45%.
One way for traditional pay TV companies to keep their customers: offer skinny bundles. More than half of those surveyed said they would pay an average of $48 a month to have just the channels they want, with HBO being the No. 1 premium service listed.
“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,” Vorhaus said. “The competition is tough between traditional and new media providers of video content to consumers.”
