Cord-Cutting Surges

The last two years – 2015 and 2016 – were big for cord-cutting.

Industry research firm The Diffusion Group (TDG) reports that more than half of cord cutters (52%) cancelled pay TV service (cable, satellite or telco) in the last two years, with one-third doing so in 2016.

The research attributes the acceleration to several factors.

First, inexpensive subscription services such as Netflix and Amazon Prime have gone “mainstream.”

“The calculus of today’s TV subscriber has been radically altered by the presence of SVOD services like Netflix,” said Michael Greeson, co-founder and principal at TDG.

Second, live TV services offered by PlayStation Vue, YouTube TV, Hulu, DirectTV Now and Sling TV mirror “in many ways the offerings of legacy providers but are customized to the needs of individual viewing segments.”

Third, most pay TV providers are rushing to provide subscription packages offering fewer channels at lower prices (skinny bundles), “racing to the bottom in terms of price and selection to save subscribers without understanding the long-term consequences of this strategy.”

“True, market conditions are challenging, but many incumbents are blindly hastening the pace at which the value of robust fullypriced TV packages declines,” said Greeson.

To learn more about the report, visit Life Without Legacy Pay-TV: A Profile of U.S. Cord Cutters and Cord Nevers.

About Larry Greenberg

A former local beat reporter and film critic, co-founder Lawrence Greenberg has more than 25 years’ experience as a writer and public relations executive.

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