"Cord cutting," the abandonment of video entertainment services by consumers who might substitute online video, broadcast TV or "no TV" for their former subscriptions are a continuing concern for all video subscription providers.
Most studies continue to show that the threat has not become a serious reality. Just 3.7 percent of the 1,000 Americans surveyed by Altman Vilandrie & Co., for example, reported actually cutting the cord and stopping their subscription to TV service.
But 20 percent of consumers say they now "shave," spending less money on cable TV service compared to the previous year, thanks to the wealth of online video.
At least 20 percent of those under 44 say they have "seriously considered" cutting the cord, however, the survey also found. More Consumers 'Shaving' Cable
Longer term, this is going to be a bigger problem, though. At some point, a combination of more content available online, higher subscription prices and more content licensing by content owners will start to tip the scales. Major change will not happen, though, until the owners of the most-popular network TV fare decide to make their content available without requiring "sell through," where a consumer has to buy a full video subscription first, before becoming eligible to watch streamed video on other devices, inside the house or outside the home.
Friday, March 23, 2012
More Consumers Cord "Shaving"
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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