Do you still subscribe to cable TV? Most of us do - but a trend called Cord Cutting is beginning to catch on. Cord Cutting is the phrase used for those who are canceling their cable subscriptions (or never signing up) and using digital platforms like Netflix and Hulu to watch programming instead.
The number of cable TV and satellite subscribers fell last year for the first time in history. This trend is mostly driven by the 20-somethings who graduated college and are still following the habits of watching TV online (and not purchasing a TV or a cable plan).
The economy is also driving this trend. The average cable bill is $75 a month - a steep price to pay when people can watch just about all of their favorite programming online, without the extra expense. However, 89% of households still have some form of cable programming and with the success of live reality shows like American Idol and real-time sporting events, that percentage won't decrease quickly.
Although I am not a 20-something who recently graduated college, I do think about Cord Cutting every time I open my cable bill, but I am not willing to give it up . . . yet.
Have you considered cutting the cord?
Maureen Quinn, Vice President of Media Services at Long Island advertising agency Austin & Williams is an expert at determining the perfect media mix, and is always eager to incorporate the latest and greatest options available to her clients. To read more about Maureen, visit her bio section on the A&W web site.
Comments – 4 responses to “Have You Cut the Cord?”
Care to comment? We’d love to hear your thoughts.
Dec 7, 2011 at 4:43 PM I just cut the cord and switched to the Roku Box and signed up for Netflix and Hulu Plus. Not every show I watch is allowed to stream on the TV, which is kind of annoying. It is definitely a decrease in convenience, but the cost savings even it out.
Dec 7, 2011 at 4:56 PM Thanks Nathan. It will be interesting to see how the cable companies combat this. I am sure there will be even more technology on the horizon giving the cable companies a run for their money.
Dec 7, 2011 at 5:03 PM I'm not sure they can combat this. I can see networks offering subscriptions directly to media consumption devices such as Roku. That way they control the ads and get more of the profit. Are cable companies just a middle man that can be cut out of the loop?
Dec 7, 2011 at 10:26 PM I have never paid for cable TV, so there's no cord to cut. Does that make me a test tube baby?
Cable companies are still the biggest providers of Internet connectivity, so while they definitely aren't going away in the next five years, it'll be interesting (and probably annoying) to see how they handle this change. My guess: to protect profits, they'll start upping the price on Internet connectivity - even charging per bandwidth.