Another week, another "Woe unto the cable industry..." report. This time, it's Yankee Group, which said in a study issued last week that 1-in-8 consumers will cut the cord this year, opting to save money on rising cable, satellite or telco bills.
After ballyhooing the return of spending in the first quarter, it's become increasingly obvious that Americans are still watching their dollars when it comes to entertainment. Yankee Group said its survey of some 6,000 consumers in the U.S. showed that-at the very least-many of them were looking at cutting back service even if they didn't cut the cord. On top of that, it's getting easier to get online video onto televisions. Yankee Group said that a new wave of connected TVs and consumer devices like gaming consoles and other hybrid set-top boxes will entice more Americans to cut their coax.
Some 90 percent of all U.S. households are pay-TV subscribers on some level. Study author Vince Vittore said the 12.5 percent projected decline is "a small phenomenon now," but warned it could pick up speed as more consumers find the entertainment they need on the Internet and try to avoid paying increasingly steep pay-TV bills.
Satellite and cable subs currently pay about $71 monthly for service, and have been seeing an average 5 percent annual increase in rates.
Much of that increase can be placed on the shoulders of programmers who are demanding higher fees, Vittore said, and those increases are being passed along to the consumer.
For more:
- see this release
- see this CNNMoney article
Related articles:
Cord cutting: Numbers up, and accelerating as more turn to web
Report: Online video success forces strategic shift in cable, IPTV
Canadians turn to online video from Pay TV
Can TV Everywhere stop the cord-cutting trend?