Multiple Studies Suggest Cord-Cutting Takes Back Seat to Cord-Cuddling
By Karla Robinson
October 22, 2012
October 22, 2012
- Despite the attention cord-cutting has received, several recent studies suggest that consumers are in fact much too comfortable with their pay TV subscriptions to switch.
- According to a survey conducted by PricewaterhouseCoopers, “The reluctance to opt out of pay TV subscriptions may be less about enthusiasm than about inertia,” reports Variety. “Nearly three out of four surveyed indicated they had no plans to change providers in the next year, and 59 percent hadn’t bothered switching providers within the past year, which PwC chalked up to complacency.”
- Another survey of 2,000 online respondents by Digitalsmiths found that keeping customers could however be difficult. “Of the four-fifths who registered satisfaction, 38 percent said they would consider changing services within the next six months,” explains the article. “But rival pay TV services are likelier to benefit from that switch than so-called over-the-top apps like Netflix; 65 percent of those surveyed didn’t use those services at all.”
- Rising fees was the main reason for dissatisfaction among the remaining one-fifth. Although nearly double the rate of inflation, pay TV fee increases still lag behind the price growth of a gallon of gas, a cup of coffee or pet food.
- “You don’t often hear of pundits warning of a pending crisis because the cost of dog food is spiraling out of control,” Bernstein Research analyst Todd Juenger notes.
- Cord cutting isn’t entirely out of the picture though. “Younger demos showed significantly less devotion to multichannel brands and more willingness to switch, particularly when it came to new features. Half of respondents ages 18-29 told PwC they were ‘likely to use the Web to satisfy their entertainment needs,’ which could bode well for the Hulus of the world,” the article states, warning pay TV providers from getting too comfortable.
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