Saturday, August 30, 2014

Cutting the cord: Just words or reality?

That all makes sense, but could the concept of cord cutting be overblown?

Only about 5% of U.S. homes with broadband Net service have cut the pay TV cord, says Parks Associates research analyst Glenn Hower. “We are not projecting really any increase in that,” he says.

That’s confirmed by a recent eMarketer analysis of recent cord-cutting research that deemed it “more myth than reality,” with perhaps 1 million U.S. cord cutters expected in 2014. Rather, consumers are more likely to switch from cable to telco and satellite services and chip away at their overall pay TV bill, the research firm’s report projects.

“A big part of that is just the fact that consumers in the U.S. especially really like their video content and in a lot of instances that is just not really available without a pay TV subscription,” Hower said. “You can get certain things from Hulu and Netflix but it is a very fragmented experience and you have to subscribe to multiple services to get all the content you want and even then you won’t have access to (everything).”

From the article "Cutting the cord: Just words or reality?" by Mike Snider.

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