The cable industry is currently in the middle of a massive transformation, as shifting consumer demands are causing operators to reconsider their traditional offerings.
One pattern that we are seeing here at GLDS is growing interest in a la carte television packages that feature “skinny” bundles. A large number of consumers are tired of paying for massive television packages, many of which tend to go completely unused.
According to a new study from TiVo, 77.3 percent of customers indicated that they want a la carte television where they can pick and choose their own channels.
Now, here’s the important part for operators:
Consumers are getting just as savvy about pricing as they are with their channel-picking. In the U.S., consumers are only willing to pay about $28 for 20 channels. This figure has declined by 14 percent over the previous two quarters. In Canada, consumers will pay $25.26 which is a decline of 20.1 percent over the same time period.
The study — which surveyed 3,081 people over the age of 18 — also shed some interesting light on cord cutting. A total of 84.8 percent of respondents claimed that they still have pay TV service. Just 21.8 percent of customers had cut the cord, which was an increase of 4.4 percent from the previous year’s report.
As is to be expected, a large percentage of respondents claimed that they are using over-the-top services. 57.6 percent of respondents claimed they are using an Internet streaming service such as Hulu, Netflix or Amazon Video.