People like to wax poetic endlessly about how services like Netflix Watch Instantly and Hulu are going to make people finally cut the proverbial cable that brings television programming into their homes. To date, however, there has not been much conclusive proof of this actually happening. A newly released study is finally saying that this act is actually a reality.
According to The New York Post, a new study conducted by Wedbush Securities analyst James Dix says that consumers are indeed cutting back on their subscriptions, or getting rid of them completely. Of the 2,500 people in the survey, seven percent said they had stopped using basic cable, and 12 percent said they had cut back on their premium channel subscriptions. Oddly, however, two percent said they had cut their Internet subscriptions, but it isn’t clear what the crossover is between those groups, if any.
While many people have suspected age would play a factor in who cut the cord first, it is income that is playing the trump card. In homes with an income of under $50,000, eight percent had cut out basic cable, but the number fell to just three percent in homes with an income of over $100,000. When asked about the coming year, 21 percent of the homes in the under $50,000 bracket said they planned to cut basic cable out of their lives.
Even with all of this information, it still isn’t clear where all of these people are going once they do cut the cable. Is it Internet streaming? Is it DVD rentals and purchases? We’re not sure, but it does appear that traditional television broadcasting may be in trouble in the not so distant future if these trends continue.
As we’ve said previously, if it is indeed streaming that people are turning to, we can’t imagine the networks are making as much from an $8.99 a month Hulu subscription as they would be from the same person watching it on commercial television. This may be where consumers want to go, but are the networks going to be making enough to keep producing the favorite programs?
What say you? Have you considered cutting the cable yet?