Cable and traditional TV subscription services are at the brink of defeat by modern entertainment methods.
This has been the discovery of the survey performed jointly by the Hollywood Reporter and online survey research firm, Morning Consult.
Conducted on October 18 and 19, 2018, a majority or 56 percent of American citizens think that cable TV subscriptions have become expensive or “unaffordable.”
47 percent of the respondents feel similarly with satellite TV. This trend is attested in the third quarter of 2018 when Comcast reportedly lost its grip of 106,000 cable TV subscribers.
AT&T’s cable TV subsidiary, DirecTV, lost 346,000 customers as well. Charter Communications shed 66,000 cable TV account holders.
Based on the Morning Consult-The Hollywood Reporter poll, the most basic response to why plenty of consumers are cutting the cable cord is “to save money.”
Cost is the most significant factor when deciding to avail TV or streaming services, according to a staggering 90 percent of the survey respondents.
Other minor answers relate more to the inconveniences of cable and traditional TV services. Tyler Sinclair, Vice-President at Morning Consult, pointed out that, apparently, budget-friendliness is what most people look for, particularly younger customers.
As for traditional TV, it reportedly had 205.4 million subscribers in 2015 based on the statistics by eMarketer. However, by 2022, these statistical figures are predicted to nosedive to 169.7 million.
It would be a tough task for traditional TV executives to win these customers back because, according to the Morning Consult-The Hollywood Reporter study, 72 percent of cord cutters are not interested to re-subscribe.
Sinclair noted that although 42 percent of Americans remark that they view more satellite and cable TV than streaming video-on-demand, the younger audiences paint a different picture.
They generally watch fewer hours of TV, be it traditional or streaming. The younger generations are reported to entertain themselves through short-form YouTube videos, social media, and video games.
These connected activities are drawing them away from cable and traditional TV services. 18 to 29-year-olds are obviously making it challenging for entertainment conglomerates to entertain them.
This holds true even for those firms with their own streaming platforms like HBO Now and CBS All Access.
With these developments, cable and traditional TV service providers must find a way to “swim” rather than “sink” in the highly cutthroat modern entertainment sector.