Are Stories of Cable “Cord Cutting” a Myth?
Stories about “cord cutting” seem to be all the rage right now, but many of them are overlooking some pretty basic – and readily available facts – which suggest that consumers may enjoy online video but they certainly aren’t ditching their set-top boxes by the truckload (just the opposite).
But, before getting into some of the basic facts which show that cord cutting really isn’t happening – at least not how it is being described in many stories – it would be foolish not to acknowledge that more broadband users (including me) are looking at more and more video online, and that is one trend that will continue. As a cycling enthusiast, I’m even considering a subscription to www.cycling.tv. But will my desire to watch a few cycling races or other videos online replace the diverse cable package that my family enjoys? Not a chance.
And that’s because most of the content online doesn’t match my viewing preferences (and the vast majority isn’t age appropriate for my kids) and the experience is marginal at best when compared to the HDTV in my family room. And even though I work in the cable industry, I don’t think my personal experience is different than many others.
Our blog has touched on the cord cutting topic before (see here, here, and here) but recent data and the ongoing media coverage make it worth revisiting.
First, keep in mind that cable is the nation’s largest broadband provider so the more consumers that need a higher speed Internet connection to watch video online, cable is probably your best option.
But when examining if cord cutting is truly happening, I would recommend reading a recent Daisy Whitney column in TV Week with a headline that says it all, “Where Are Cord-Cutters? Signing Up for Cable, Satellite.” The takeaway – in the 4th Quarter of 2008, video subscribers increased by 441,000. And for all of 2008, Sanford Bernstein analyst Craig Moffett reports that video subscribers rose by 1.3 million subscriptions, and he says, “cord cutting remains the province of urban myth.”
When it comes to TV viewing, Nielsen’s Three Screen Report also demonstrates that consumers are watching more video than ever, now up to 151 hours per month on TV alone. Viewing of online and mobile video is also growing, but it’s only up to 3 hours per month online and 4 hours per month on mobile phones and other devices:
Viewers appear to be choosing the ‘best screen available’ for their video consumption, weighing a variety of factors, including the quality of the screen experience, convenience, availability of the video, and the ability to watch according to the consumers’ schedule. In the majority of cases, consumers choose to view video through the traditional means – live viewing of television in the home.
So, the data looks pretty clear yet we keep seeing headlines about Internet TV becoming the new mass medium. I guess the point here is to use caution (and facts) before coining the next trend.
Tags: broadband video, cancel cable, cord-cutter, dump cable, online video
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May 26th, 2009 at 3:50 pm
[...] Are Stories of Cable “Cord Cutting” a Myth? [...]
May 28th, 2009 at 1:39 pm
I used to be a Suddenlink customer up until mid January. I “cut the cord” so did two people who have offices next to me at work. I love it. I rely on web and over the air reception…Vista Media Center serves as my DVR. I would have had a harder time cutting it if it wasn’t for ESPN360, but they offer a good selection of sporting events and very good streaming quality over my 3mg DSL connection.
July 4th, 2009 at 1:22 pm
Brian Dietz .. my friend you are a dinosaur. Just think, 100 years ago, there were some who questioned the auto, airplane, lightbulb, photograph, phonograph and even electricity. They sited the example of the “average” American who had NONE of those things as “proof” those inventions would not take the place of the horse, the pony exress or buggy whips.
Look around you, everyone is on the net. I signed up with http://www.shop.utilix-co.com and paid $65. What I found out is that about 87% of the content of Cable or Satellite Tv is available online. However, less than 50% of Internet Tv can be viewed on Cable or Satellite.
In short, I can watch virtually anything you can watch on Cable much cheaper. However, there are many shows (old and some new) you cannot watch. Also, I love to watch the news . . hated the slanted nature of Cable news shows. Now, I can watch the “real” news and never miss a story.
As far as the picture, I watch Internet Tv on my big screen in HD and surround sound. So, while you are paying $70 per month or $1680 for two years, I pay less than $300 and get more. This is why the Cable people are nervous . .
July 4th, 2009 at 1:29 pm
Internet Tv sounds too good to be true ? See for yourself. GOTO http://www.facebook.com/ads/manage/#/pages/Internet-Tv/94310348378
Become a “fan of Internet Tv” for free & then take the Internet Tv Challenge. For a month, write down your favorite Cable shows and submit them to “fan of” Internet Tv. See whether most of the shows are available online (either on Basic or Premium).
Watch those shows and comment whether they “suffice” on wide-screen viewing. The Challenge – see whether at least 75% of your shows are available on FREE Basic Tv & whether 12.5% of the remaining are available on Premium (for $5 per month).
If they are available, see how much you pay for Cable and multiply by 24 months. Then get a quote (fans of Internet Tv) for how much you would spend on Internet Tv for the same period. I will easily save over $1,200. Never have a late charge or have to worry about returning the tape again.
December 28th, 2009 at 9:31 pm
Thanks for posting such kind of usefull information.Keep Posted in future as well.Thank you!
March 17th, 2010 at 10:47 pm
I’m glad to see someone else who likes Sonny with a chance as much as I do, GradyZora is my favorite character on the show. Thanks for this post, I enjoyed reading it!
May 1st, 2010 at 12:34 pm
[...] much TV content they could get online. To be sure, analysts and industry observers have questioned if there is really an exodus from pay TV. But Yankee’s report is something to pay attention to. Consider the numbers involved. [...]