If it seems like just about everyone streams some type of service like Netflix or Amazon, a recent survey from the magazine Consumer Reports (CR) just about validates that statement.
After polling more than 1,000 U.S. adults this past February, and analyzing the responses from the questionnaire results from its 82,000-subscription base, CR discovered some interesting results. The data found that nearly half of U.S. households—47 percent—now use some type of streaming service such as Netflix or a pay-as-you-go option such as iTunes.
The study also found that despite the increased use of the term “cord cutter” consumers are not completely abandoning their cable and satellite services as rapidly as the term’s usage would lead the media industry to believe.
Commenting on the survey’s data, CR says “our surveys show that while traditional TV services continue to lose customers, cord cutters make up a trickle of users rather than a torrent. Despite the widespread availability of both paid and free advertising supported streaming services, more than two thirds—68 percent—still subscribe to a cable TV or similar pay TV service.”
Arguably the most surprising piece of information to come from the survey is that more than three quarters of the survey’s participants stated they would not drop their cable subscriptions because they are “relatively happy with their provider.”
Where streaming is affecting the subscription to cable TV services is the level of users’ subscriptions. According to the numbers, 20 percent of CR’s subscribers have either downsized their cable subscription (11 percent) or completed eliminated their cable service (9 percent).
The magazine points out that one of the factors to consider in cable subscribers’ decisions is this: many consumers receive Internet service from their cable companies and the elimination of cable subscriptions may not deliver the desired savings consumers consider valuable.
Another factor affecting the decision to cut the cord is the accessibility of local broadcast affiliates such as ABC, CBS, NBC and Fox.
A final factor in the cord cutting decision process is the availability of live sporting events. While available in limited quality through specific league subscription packages from the four major sport leagues, games may be blacked out, and CR adds that ESPN is only available to cord cutters as part of the Sling TV bundled package.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our digital newsletters!