As of now, during the series of lockdowns across the world during COVID-19, people are consciously choosing to watch affordable streaming services which include Netflix, Hulu, etc. Therefore, the viewership of traditional cable TV is substantially declining. Yet, around 90 million cable services subscribers in the United States are being charged almost $100 monthly for the regular pay-tv, where do they stand?
As the recent survey by Deloitte suggests, Americans are keeping their Pay-TV subscriptions as they’re included with their internet package too. As the whole price sounds the best bid, so about 56% of people take the bundle and state this as the top three reasons for holding on to the subscription. We see a similar scenario with Spectrum cable where people prefer bundling it up with the internet and/or digital phone services for their ease.
There no denying the fact that cable TV services are undergoing challenges presently. Streaming services are deemed to be the primary reason behind this whole cord-cutting and never-cord trend. However, some rational factors are encouraging cable TV users to switch from constantly rising expensive monthly bills to the convenience factor of thrashing FOMO on your show via streaming services.
In order to combat this situation, the cable TV industry and particularly the proactive providers are working on it to beat the heat by launching their own streaming apps for their customers to introducing contract-free cable TV plans. Some notable leading cable providers which include Spectrum, Xfinity, Mediacom, and WOW! cables are already paving the way for others while the rest is following. These modifications are making it easier for already existing cable customers to stay, or change the plan that fits their budget and/or go hybrid where they can enjoy cable TV services along with their choice of alternative. That is significantly going to reduce the turnover rate and already is.
What are the reasons behind cutting-the-cord or never-cord?
Around 70% of the Pay-TV users think that they’re being charged a lot of money for their cable TV monthly subscriptions. Most of the cable services plans are Add up these numbers with the increase of less costly ”skinny bundles” and broadband options, and the two big reasons; live TV and internet bundle value for which traditional TV is being kept, this all looks less considerable.
Why people prefer Cable TV services?
Cable and satellite firms usually bundle up TV, internet, and digital home telephone in a single package at a significantly reduced fee. The amount won’t pay for just the internet which isn’t much less than the whole bundle price so all in all, it looks appealing when you compare the bundle prices with standalone services. Then, the cable companies exclude some more charges in terms of monthly charges by adding additional equipment in the bundle.
- The collective reason, without any surprise, given for having Pay-TV or cable TV services is that it enables the customers to stream live broadcasts and this is stated by 71% of cable TV subscribers.
- If we probe further, we’ll find out that people are keeping Pay-TV because of the DVR and they don’t want to replace it as they have had it for a long time. It has been seen that men tend to keep a subscription to cable to easily access live sports whereas women choose cable subscriptions because it gives more extensive options for TV shows.
- Taking convenience into consideration was also important and we can’t disagree that if one has all television choices in a single place with cable, it will be highly advantageous notwithstanding the cost.
- As broadcast television has a stronghold on agreements with the majority of the sports leagues, replacing live sports with streaming services is challenging.
- On the other hand now as the trend of digital streaming is growing big, leagues such as the NFL, MLB, and NBA will most probably follow the developments. The advertising bills will see a major rise once the streaming services will be able to manage live broadcasts of major sports on their portals.
We have tried to jot down and shed some light on all the possible reasons behind customer’s inclination towards cable TV. It sure is declining but what are the factors that are keeping it alive and chances are that it will survive this hard state of affairs as well.