While cord cutting and shaving may be challenges for pay-TV providers, the vast majority of US consumers still say they are not ready to give up on these proven and deeply established sources of entertainment.
The pressure on traditional multichannel subscriptions abated in the second quarter, a positive direction that is further supported by the forwarded momentum of virtual services Sling TV and DirecTV Now, according to the Q2 2018 US Multichannel Subscriber Report by Kagan.
The cord-cutting trend that threatens the future of the global pay-TV industry was not confined solely to the US in 2017; total pay-TV subscriptions also declined in 13 other markets.
What if the common belief that the losses in traditional pay TV subscribers are due to mainstream video streaming services is wrong? Or, that belief is an oversimplification of a complex problem?
US research firm eMarketer has reduced its estimate for US TV ad spending due to faster-than-expected growth in cord-cutting.
WATCH VIDEO. Hulu, not Netflix, appears to be driving the recent increase in cord-cutting, according to Corey Barrett, a senior media analyst at M Science, talking to CNBC News.
Expensive cable subscriptions remain the main reason why US customers are deciding to cut the cord, but OTT services, DTT and binge watching are becoming more important.
WATCH VIDEO. Netflix CEO Reed Hastings sees Amazon as an “awfully scary” competitor, though he stopped short of saying it was Netflix’s biggest threat, he said on on CNBC’s Squawk Alley earlier this week.
“We all have a problem”, Lutz Schüler, CEO of German cable operator Unitymedia, said in the opening discussion of the ANGA COM 2017 congress in Cologne: “We live from the inertia of the German customers.”
60% of Dutch viewers will consider cutting the cord if the three main public NPO channels are available OTT, according to research from Telecompaper.