LONDON, United Kingdom – As 4Q2019 draws to a close, cord cutting has started to show signs of losing momentum.
According to a recent report, the amount of pay TV users have stabilized somewhat in the past year, as opposed to the previous years when it had dropped steadily. The report, made by the PwC on pay TV and streaming services, has found that 68% of all survey respondents are subscribed to a pay TV service, as opposed to 67% in 2017.
Cord cutting, on the other hand, has incurred an overall decline of 6% of subscribers, putting into question market analysts’ estimations on its long-term effects on the entertainment industry.
According to PwC partner Greg Boyer, this is merely symptomatic of the fact that the migration from pay TV to cord cutting is for the most part complete.
This goes against many speculations that cord cutting will continue until everyone has moved to it, thereby making pay TV obsolete. This is based on the fact that short-term downspikes in pay TV viewerships have been consistently appearing in several reports.
A popular explanation for this is the fact that people do not want to be bothered to pick and choose their viewing options themselves, and are simply satisfied with pay TV subscriptions that give them all of the channels they want, plus some extra.
It would seem that the new paradigm in this changed landscape is that whoever has remained in the pay TV camp has decided that they’re happy with their current packages, and would even consider expanding them rather than cut the cord.
According to Boyer, those who had speculated that cord cutting will inflict serious damage on pay TV’s numbers have not considered that several factors retain the integrity of its viewership. This includes live programming events such as news, sports, and various other shows.
Boyer also mentions that people now spend more on TV and streaming in general, and that could give positive implications for revenue from expanded pay TV packages. The question that remains, according to him, is how much more.