The number of consumer who say they might cut the cord on their pay-Tv service is growing, according to a new survey.
Frank N. Magid Associates, in its annual Magid Media Futures report, says that 5.7% of the pay TV subscribers responding to its poll said they were “very likely” to cut the cord. That’s up from 3.8% last year and less than 2% when Magid conducted its first study in 2011.
“There is a slow, slow drip of cancellations for the Pay TV companies and it is growing every year,” said Mike Vorhaus, President of Magid Advisors. Some groups are even more likely to cut the cord such as Millennials at 9%.”
The top reason for cord cutting is the amount of other content available form subscription VOD services and over the top providers like Netflix and Hulu, said 70% of those surveyed.
Skinny bundles also have an appeal to a majority of those surveyed. The price they would prefer for their skinny bundle averaged $48 a month.
The pay-TV companies will have to work hard to maintain their relationship with American consumers, through standard cable/satellite bundles, other services like Internet access, and skinny bundles. The competition is tough between traditional and new media providers of video content to consumers,” said Vorhaus.
Magid surveyed 2,400 consumers aged 8 to 64 in the U.s.