Analyst Says Bundling Could Stop Cord Cutting

A team of researchers may have just solved the cord cutting nightmare that has been plaguing the cable television industry for the last several years.

What exactly is cord cutting? Simply put, it’s the process of television consumer subscription—or pay TV— abandonment. And it’s poised to greatly change the cable television industry moving forward. A 2014 survey, for instance, shows that about 53 percent of frustrated consumers would abandon their cable company if there was a choice among other providers; and 77 percent of cord cutters have no intention of going back to cable.

Why are so many consumers choosing to move on from their traditional cable television service providers? Ultimately, it boils down to the fact that most consumers do not want to pay for channels that they don’t typically watch. Some consumers, for instance, spend all of their viewing time watching ESPN and FOX, but no time watching Cartoon Network.

As a result, many consumers are now choosing to forgo television subscriptions in favor of over-the-top content services like Netflix and Hulu. Consumers instead want access to “TV everywhere,” or demand, so that they can view what they want, on their device of choice, at anytime.

So what’s the solution to this problem? According to a recent focus group study conducted by Sanford Bernstein media analyst Todd Juenger, the answer appears to lie in offering cable customers bundled packages. This is due to the fact that bundled packages are typically cheaper than standalone Internet service, which makes them more appealing to bargain-savvy media shoppers who are looking for the best deals.

The study also proved that younger customers with plans to abandon their pay TV subscriptions within six months actually changed their minds when given an enticing bundled offer.

Only time will tell if bundling packages will successfully stop the cord cutting problem, but cable companies would be well-advised to try offering bundled packages to stop the bleeding in the meantime.