80% Cut the Cord Because Cable TV is Simply Too Expensive

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A new report by TiVO (pdf) on cord cutting indicates that nearly half of current pay TV subscribers are considering cutting the cord this year, and nearly 80% of those considering the shift will do so because their current pay TV service is simply too expensive. The survey of more than 3,000 consumers found that only 51.1% of those polled were seriously considering sticking with their traditional pay TV provider, an ominous sign for an industry that's expecting the second quarter to potentially see the highest volume of cord cutting on record.
 
"37.1% of respondents spent at least $101 per month -- with some spending more than $150 per month -- on pay-TV services alone," notes the report, which indicates that this is a percentage of users that increased 2.3% quarter over quarter.
With a growing number of streaming alternatives emerging, and companies like Charter now blindly imposing rate hikes in utter tone-deafness to what should be obvious industry trends, there's every indication this pattern (both cable TV price hikes, and the subsequent defections by frustrated consumers) will only accelerate.
After price, the survey found that use of streaming alternatives (57.6%) and use of over the air antennas (32.5%) were the most common reasons given by users that cut the cord.
Broken down further, the study found that among those "unsatisfied" with their current cable TV provider, 81.4% say they're mostly annoyed because of high prices. Though 32.9% say they're frustrated by "poor customer service," and 29.9% say they're bothered by the quality of the pay TV service they receive from their telco, cable, or satellite TV provider.
"When the increase in monthly bills is coupled with the fact that 81.4% of unsatisfied respondents selected “Too expensive/increase fees for cable/satellite service,” it becomes evident that something must be done about this group," notes the survey. "With more options than ever for TV in 2017, consumers continue to get smarter about their TV options, and many have discovered ways to access TV for far less than $100 a month. Skinny buddle offerings have increased, too, and options include Dish Networks’ SlingTV, DIRECTV NOW and Sony’s PlayStation Vue."
There's more detail on Tivo's latest study over at the company's blog. The full report itself can be found here (pdf).

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