Study: ‘Cord-Cutting’ Could Cripple Cable Profits


A newly released from New York-based research company cg42 finds that pay-TV providers could lose out on nearly $1 billion in revenue over the next year.

According to the Gotham research firm’s “2016 Cord Cutter & Cord Never Study,” some 800,000 cable TV consumers will likely leave their MSO in a cost-savings move that may see them shift to OTT platforms.

The study builds on cg42’s 2014 Cord Cutter Study by providing a focused look at both U.S. consumers who opted out of subscription-based paid-TV service in the last two years, and those who have never subscribed to paid-TV service.

The inclusion of these “Cord Nevers” is “reflective of the growing trend, particularly among younger consumers, to opt for streaming services and avoid subscription-based paid-TV altogether,” cg42 reports.

The research company surveyed some 1,119 individuals, via an online query system.

According to analysis of the study by The Wall Street Journal, pay-TV providers lose some $1,248 per cord-cutter annually. The average cord-cutter saves $104 a month, some 56% of their bill, by saying goodbye to their cable TV service.

The average bill among those surveyed for cable TV, phone, internet access and streaming services is $187 per month.

A respondent who never had a pay-TV connection spends roughly $71 on streaming services and home internet combined.

The most-watched streaming outlet for cord-cutters and cord-nevers is Netflix, with some 94% of respondents stating they have a subscription.


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