Predictions

by Mike Masnick


Filed Under:
cord cutting, pay tv, tv, watching



Over 400,000 Homes Have Cut The Cord So Far This Year... But Cord Cutting Is Still A Myth?

from the reality-smacking-that-myth-around dept

For a few years now, we've been hearing pay TV execs (and some of their favorite Wall Street analysts) claiming that cord cutting in the US is some sort of myth, even as the numbers continue to prove otherwise. The latest stat is that, since the beginning of this year 400,000 households have cut the cord and dropped pay TV services. At what point will the TV guys realize that cord cutting is real? They still like to blame it all on the economy, but the fact is that the vast majority of these users are never going back. Until TV execs realize that's a fact, they're never going to understand how to adapt.

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  1. icon
    fogbugzd (profile), 6 Aug 2012 @ 8:44am

    Most of the people non-cord cutters that I know are keeping cable because of college and pro sports. This is probably great news for the sports industry in the short term. It gives ESPN and other sports channels good reason to extort more and more money from the cable industry.

    But in the long term sports is losing the next generation. I am the mentor to one of our campus's residence halls. Students are not connecting to the free cable TV that is provided by the University. Most of them do not even have TV's. Most of the ones who do have TV's are connecting them to the Internet but not the cable outlet. Keep in mind that the cable is provided FREE, students just have to buy their own patch cable. But in my dorm the TV outlet is in an inconvenient location, so it isn't worth hooking up for most students. This is the flip side of "you can't compete with free." In this case free can't compete with paid services like HuluPlus and Netflix.

    Ten years ago if you went to the residence halls on Friday or Saturday you would hear football or basketball coming from most of the rooms. Now it is rare to hear even a single TV on football on Sunday afternoon. Sports is losing a generation because they are dependent on cable revenue.

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