80% Cut the Cord Because Cable TV is Simply Too Expensive A new report by TiVO (pdf) on cord cutting indicates that nearly half of current pay TV subscribers are considering cutting the cord this year, and nearly 80% of those considering the shift will do so because their current pay TV service is simply too expensive. The survey of more than 3,000 consumers found that only 51.1% of those polled were seriously considering sticking with their traditional pay TV provider, an ominous sign for an industry that's expecting the second quarter to potentially see the highest volume of cord cutting on record.

"37.1% of respondents spent at least $101 per month -- with some spending more than $150 per month -- on pay-TV services alone," notes the report, which indicates that this is a percentage of users that increased 2.3% quarter over quarter. With a growing number of streaming alternatives emerging, and companies like Charter now blindly imposing rate hikes in utter tone-deafness to what should be obvious industry trends, there's every indication this pattern (both cable TV price hikes, and the subsequent defections by frustrated consumers) will only accelerate. After price, the survey found that use of streaming alternatives (57.6%) and use of over the air antennas (32.5%) were the most common reasons given by users that cut the cord. Broken down further, the study found that among those "unsatisfied" with their current cable TV provider, 81.4% say they're mostly annoyed because of high prices. Though 32.9% say they're frustrated by "poor customer service," and 29.9% say they're bothered by the quality of the pay TV service they receive from their telco, cable, or satellite TV provider. "When the increase in monthly bills is coupled with the fact that 81.4% of unsatisfied respondents selected “Too expensive/increase fees for cable/satellite service,” it becomes evident that something must be done about this group," notes the survey. "With more options than ever for TV in 2017, consumers continue to get smarter about their TV options, and many have discovered ways to access TV for far less than $100 a month. Skinny buddle offerings have increased, too, and options include Dish Networks’ SlingTV, DIRECTV NOW and Sony’s PlayStation Vue." There's more detail on Tivo's latest study over at the company's There's more detail on Tivo's latest study over at the company's blog . The full report itself can be found here (pdf).







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Most recommended from 60 comments

Walter Dnes

join:2008-01-27

Thornhill, ON 27 recommendations Walter Dnes Member The " Wall Street Disease" I'm moderately conservative/right, and what I'm typing now scares even me. Years ago, shareholders were happy with a company that made a steady profit. Things slowly evolved (devolved?) to the point where shareholders demand constantly increasing profits (and dividends) per share, year-over-year. How do you get that, you ask? Simple, keep raising prices.



• the various sports leagues keep asking for higher rights fees from ESPN/NBCSports/FoxSports/etc

• ESPN hikes their monthly rates to pay for the above, and includes a rising profit for themselves

• OTA stations keep raising the "retransmission fees" they demand from cablecos

• Various cable-only channels keep raising their monthly prices

• the cablecos hike fees to pay for all of the above, and extra, to give themselves a growing profit



Unfortunately, the average person's paycheque has not kept pace. It came down to paying rent or mortgage payments and buying groceries and clothes, versus having cable TV. Cable TV you can do without. Food/shelter/clothing are necessities. adam1991

join:2012-06-16

united state 12 recommendations adam1991 Member Value, not price "...will do so because their current pay TV service is simply too expensive."



No. People are happy to pay lots of money for something.



What they're finding, though, is it's too expensive for what you get. That's the value equation.



They're paying A LOT, but getting little in return.



In a mobile, cellphone-infused world that includes Netflix, Hulu, and Amazon for $30/month, who cares about having cable TV.



I would like to see how many of these numbers include people who move frequently, or who are young and moving out on their own for the first time and are seeing monthly bills for the first time on their Applebee's waiter paycheck.



You can't get blood from a stone.

nycnetwork

join:2000-11-12

Brooklyn, NY 6 recommendations nycnetwork Member Taxes + Fees It's the broadcaster fees, sports network fees, cable box rental fees, taxes, etc that is becoming absurd.



The $79.99 FiOS triple play deal in NYC comes up to $115, after all the taxes and fees. It's laughable. tim92078

join:2010-07-15

San Marcos, CA 5 recommendations tim92078 Member Internet only, thanks TV provider prices are utterly insane. Use other streaming alternatives exclusively now.

ptrowski

Got Helix?

Premium Member

join:2005-03-14

Woodstock, CT 4 recommendations ptrowski Premium Member We did it.... Almost a year ago dumped DirecTv and went with Playstation Vue. Bill went from $130 ish to $35.

ctaranto

join:2011-12-14

MA 3 recommendations ctaranto Member Agreed We dropped cable in Feb 2014. Was paying ~$250/month for cable/internet/phone (VZ FiOS). Never used phone, but was cheaper than not getting it. Had Netflix and Amazon Prime already as well as separate VoIP service.



Bill dropped to $65/month for just internet (still VZ FiOS).



Replaced with high end antenna in attic, MythTV on a Linux server, HDHomeRun, and nVidia Shield/Kodi boxes around the house. Easily passes the WAF. WhatNow

Premium Member

join:2009-05-06

Charlotte, NC 3 recommendations WhatNow Premium Member Bad Programming I had TWC at over $170 for 15 meg internet and TV no VoIP with 200 channels no HBO types and it got to the point at least 2 night I could not find anything I wanted to watch that was not a repeat. The content side keep pushing the price up on channels I never watch. A a carte might not lower the price but it would push a lot of channels of the air when no one is willing to choose and pay for them.