Pay TV cord cutting accelerates as Netflix, Hulu rise, study says

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Television viewers are now more likely than ever to cut their cable and satellite TV subscriptions because of Internet services like Netflix, according to a study released Wednesday.

The study by research firm Frank N. Magid Associates found that the number of people likely to cancel their pay TV subscriptions in the next 12 months is still relatively small, but steadily increasing.

“Though this is a small number of consumers, it still adds up to big bucks for major pay TV companies,” Magid Advisors president Mike Vorhaus said in a statement.

Perhaps most troubling for the pay TV industry is that viewers 25-34 are the most likely to cancel their subscriptions. That demographic represents a “household formation” group that is normally starting to get married, buy homes and raise kids, the company said.

The survey’s results show a steady rise in cord cutting that “is not some sort of ‘over the cliff’ emergency, but rather a ‘drip-drip-drip’ problem for the pay TV industry,” said Vorhaus, who unveiled the study at a Goldman Sachs conference in New York.

The information comes as streaming services like Netflix and Hulu continue to grow, with online services like Sling TV and HBO Now being released this year.

This week, CBS brought CBS All Access, its $5.99-per-month TV streaming service for cord cutters, to Google’s Android TV platform, amid rumors that it will eventually do the same with Apple TV.

The Magid study has cataloged the rise of cord cutting, a TV industry term that refers to viewers who have scaled back or stopped subscriptions to traditional pay TV services. This year’s study of 2,400 U.S. consumers showed that the percentage of people saying they were “extremely likely” to cut the cord grew to 3.7 percent from 1.9 percent in 2011.

But that percentage rises to 7.1 percent among viewers ages 25-34, the demographic the pay TV industry once counted on to sign up as new subscribers.

Moreover, 20 percent of those surveyed said they have never subscribed to a cable or satellite TV service, a group called “cord nevers.” Another 23 percent said they last subscribed to pay TV more than five years ago, while 21 percent said they cut the cord within the past year.

Pay TV companies still retain a majority of overall TV viewers as customers, but growth rates for new subscriptions have flattened.

And it’s not the cost that’s keeping them away. Rising monthly subscription costs have become less of a factor for cord cutters — 30 percent said pay TV was too expensive, compared with 40 percent in 2014.

Instead, 77 percent of cord cutters now cite their satisfaction with online streaming alternatives like Netflix and Hulu.

“We do believe that (online TV) services are accelerating this trend,” Vorhaus said in an e-mail.
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Pay for Cable TV in 2015 brehs :scusthov:

Like I've been trying to tell naysayers before, it's not so much about cost, but convenience overall.
 
Turbulent

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the ONLY reason to have cable is sports. i don't know if it's possible to do with regulations in canada and USA or if it even already exists, but if someone started a cable company with JUST sports channels and it was like packages from 10$ to 25$ :banderas: don't know if it would make sense financially though...
 
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I'm a comm tech for COMCAST..hearing news like this got me like :sadcam:
 
Dillah810

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Turbulent said:
the ONLY reason to have cable is sports. i don't know if it's possible to do with regulations in canada and USA or if it even already exists, but if someone started a cable company with JUST sports channels and it was like packages from 10$ to 25$ :banderas: don't know if it would make sense financially though...
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Skooby said:
I will continue to pay for cable/satellite until there is a viable alternative for live sports.

And right now, there just isn't any.
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I thought Sling TV was the best alternative. $20 a month and you get ESPN, ESPN 2 and TNT.
 
Skooby

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Another thing, some of the internet services don't have programs available until the season is over.

I still like to watch programs as soon as they are on or at least DVR them and watch later in week.
 
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Skooby said:
I don't think anyone has NBA TV or NFL Network.
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Won't league pass work for you? An Apple TV will take care of that if you sign up for the NBA League Pass. That NFL Streaming package is expensive as hell if you need that...

Not sure about the NBA TV or NFL Network channels though.
 
Skooby

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Liquid said:
Won't league pass work for you? An Apple TV will take care of that if you sign up for the NBA League Pass. That NFL Streaming package is expensive as hell if you need that...

Not sure about the NBA TV or NFL Network channels though.
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League pass doesn't have playoff games. NBA TV has playoff games on it...so I want that channel.
 
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