Pricing is the driver for video subscriptions


Cable / SatelliteA new study suggests that most people who cut the cord to so as a cost cutting measure, and said that offering special deals is a good way to get the cutters to go back to the cord.

Just as dissatisfaction with cable is not the reason people tend to leave, dissatisfaction with over the top services isn’t the reason most people go back to cable. It’s usually because of an improvement in personal finances coupled with an offer from a cable or satellite company that is enticing enough to make the move back.

This usually comes in the form of free or discounted premium channels, says Parks Associates.

“Most people leave pay-TV services due to economic factors, and these are the main influencers bringing them back,” explained John Barrett, director, research, Parks Associates. “They are not dissatisfied with Internet video. In fact, many cited Netflix Watch Instantly as a very satisfying experience. These re-subscribers were simply ready to take advantage of a promotion as their own financial situation improved.”

“Content availability is an important consideration for TV viewers, and these promotions seem to be the final push many consumers need to jump back into the pay-TV fold,” Barrett added. “At the same time, economic factors work against Internet video services. Consumers who cancelled their Netflix account cited a need to save money or were responding to the company’s price increases.”