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New Cord-Cutting Data Finds Cable Companies Under Threat of Disruption from Streaming Services
To understand at scale what kinds of TV services Americans are willing
to pay for,
- Nearly 26% of new customers asked for Internet service only, as opposed to 22% who asked for only cable. This suggests that more consumers are interested in an a la carte pay TV model, in which the Internet provides the gateway to content and channels without costly bundling.
- Nearly 40% of consumers asked providers about paying for specific channels, which strongly suggests that consumers want more freedom and flexibility to cherry pick content.
Of those consumers, nearly half, 47%, wanted premium programming, such
Showtime, Starz or HBO. The top premium channel requested was HBO.
When it comes to sports networks, five times as many consumers in the
study asked for
ESPNcompared to those asking for Fox Sports – 20% vs. 4%.
The category of sports is critical, and
ESPNleads the way. Sports matches remain a huge ratings draw, leaving fans largely unable to cut the cord.
“Cable companies are coming face-to-face with the threat of disruption.
Our data shows that providers need to start addressing pressing consumer
demands; otherwise, they risk losing real market share when people
decide to cut the cord for good,” said
The findings appear in a white paper released today entitled “Cutting the Cord: How Cable Companies Can Turn an Impending Threat into a Market Opportunity,” and is the latest in the Institute’s Industry Trend Series, which spotlights data in a particular business vertical.
In the paper,
The paper outlines various ways in which cable providers should respond to this shifting consumer landscape. It also noted that the balance of power that providers have enjoyed for decades is coming to an end.
“While the vast majority of consumers today remain traditional cable subscribers, industry data and Marchex’s findings confirm that the cable industry is a legacy model under threat of new and disruptive services,” the paper states. “Change is crucial to its future success.”
To download the white paper, please visit http://www.marchex.com/institute/cable_cord_cutting.
Marchex Corporate Communications
Sonia Krishnan, 206-331-3434