The number of Americans saying good-bye to monthly cable and satellite bills appears to be on the rise. According to a report released this month by analysts at SNL Kagan, cable operators lost 1.8 million subscriptions in the second quarter of this year, and 911,000 of those are people that have cut those types of plans out of their lives altogether from numbers gathered by MoffettNathanson.
While there are always people switching things around such as moving from traditional cable subscriptions to telco companies that bundle cable and TV together – 400,000 homes are estimated to have done that last quarter – the number of people doing away with subscriptions definitely appears to be escalating. Craig Moffett of Moffett Research, the man credited with creating the “cord cutting” phrase, recently told Variety, “Cord cutting used to be an urban myth. It isn’t anymore.” He went on to add, “No, the numbers aren’t huge, but they are statistically significant.”
Cable companies are said to finally be taking this as a serious threat, but the question remains what those entities will do to try to stem the losses. Some companies have already begun to raise the prices of Internet packages in an attempt to make it a little less alluring to switch over to options like Hulu and Netflix, but considering the low cost of streaming services compared to a monthly cable bill, it’s a doubtful even that will be enough.
With the ease with which people can now get Internet content on their televisions via built-in apps and devices such as the Chromecast, Roku boxes and other devices, cord cutting is only going to become more attractive to consumers. With numbers such as these it appears it’s already happening, not lets just see if the old school content suppliers can finally come up with a new trick to lure consumers back.