Cord cutting is a real phenomenon, is already happening, and is only going to happen in greater numbers in the years to come. The sooner cable companies realize their monopoly is coming to an end thanks to online video, the better it’ll be for all concerned.
Cable Cord Cutting
Millions of Americans pay out thousands of dollars every years for cable services, both basic and premium. For this huge outlay of cash they receive up to 500 channels, most of which are full of crap that very few people deem worthy of watching.
The cable companies have a monopoly of sorts: you only get to watch the channels that broadcast decent programming if you also put up with, and pay for, the channels that pump out unwatchable nonsense 24/7.
There is, however, an alternative. Which is online video on demand, which puts the control back in the viewers hands. And all it takes is for that cord to be cut.
It’s Real, Accept It
There have been a few stories regarding cord cutting this year. In April, a report suggested that one in eight households would be cutting the cord during 2010. In June, Nielsen branded cord cutting nothing more than “a myth”. And in September, Verizon CEO warned cable companies not to ignore the trend as it’s very real indeed.
Now, a new survey by Wedbush Securities analyst James Dix backs up the findings of that first report from six months ago.
2,500 people were questioned: 7 percent have already given up their basic cable service, while 12 percent have given up their premium cable service. Households with annual incomes of less than $50,000 were the most likely to have cut the cord, with 8 percent having done so compared to the 3 percent of household with annual incomes of more than $100,000.
Looking to the future, a whopping 21 percent of the $50k or less group expect to cancel their basic cable service in the year ahead. Interestingly, only 2 percent of those who have already cut the cord also canceled their Internet connection.
Conclusions
The facts are clear: cord cutting is real and is happening right now. And with people being averse to cutting their connection to the Web it is this path most will head down in order to replace their entertainment needs. Legally or otherwise.
It’s time for the cable companies to lift their heads out of the sand and actually pay attention to what is happening. Then maybe we can all agree on legitimate ways for viewers to obtain the services they want, how they want them, and for a fair price.
[ Via The New York Post]
