We may have entered a new year, but that hasn’t changed the trend for people cutting the cord. And despite the cable companies still denying the whole notion is a myth, a new survey suggests more people are gearing up to make the move.
Cord-Cutters Unite
According to a new survey from J.P. Morgan’s Imran Khan (via MediaMemo), 2011 is set to be a bumper year in terms of the number of people cutting the cord.
28 percent of those with a cable or satellite TV package stated they would consider switching to online video. If you replace “would consider” with “are considering” then this is a startling result. 63 percent of these people wouldn’t even be put off by the lack of live sports available on the Web.
Netflix appears to be the main source of this confidence in cutting the cord, with 47 percent of all active Netflix streamers stating they are considering making the move.
Khan consequently calls this move “a consumer-driven Tsunami.”
Cable Companies Denials
Flying fully in the face of the mounting evidence that cord cutting is real and is happening, cable companies and others continue to deny its existence. Comcast claims anyone dropping their service is just reacting to the recession, while Nielsen had the temerity to brand the whole thing “a myth.”
I guess it’s natural for an industry facing a struggle to retain its customers to try and mask the truth. There’s an obvious fear that admitting such a revolution is afoot could result in even more people checking out the alternatives and choosing one over cable.
But at the end of the day burying their heads in the sand isn’t going to get them far.
Conclusions
Cable companies need to admit the truth while forming a strategy for retaining their customers or adapting their businesses to stay relevant in the Web-lead world we now inhabit. Otherwise they’re destined to lose control like the major record labels have done.
