Tag Archives: Netflix

Report: 2.65m US pay-TV subs ‘cut the cord’ in 2008-2011

Some new evidence from the US claiming that ‘cord-cutting’ may be a real phenomenon after all.

Today’s Morning Bridge cites research from Convergence Consulting Group saying that “2.65M Americans between 2008-2011 canceled their pay-TV subscriptions in favor of those offered from internet streaming services.” Convergence predicts that by the end of this year, “as many as 3.58M consumers will cut their cord.”

The Bridge adds that in a separate report, Leichtman Research has found that the top 14 US MVPD operators added 175K fewer subs in 2011 than in 2010.

Claims about the impact of cord-cutting have frequently been disputed because it is difficult to gauge what proportion of customers are churning out of pay-TV simply because they’re cutting back on their entertainment expenditure during the recession, or for other reasons unrelated to the availability of OTT services such as Hulu and Netflix.

Update: Leichtman Research has pointed out to Connected TV that it was Convergence Consulting Group and not themselves which was responsible both for the 3.58M cord-cutter prediction, and the conclusion that OTT was the culprit. This was not made clear in the Morning Bridge article, and the above post has been amended accordingly.

Heavy Netflix streamers bear out pay-TV ‘cord-cutting’ fears

New research from The Diffusion Group suggests that although the propensity for ‘cord-cutting’ (i.e. downgrading or termination of pay-TV subscriptions) in the USA is mainly associated with economic stringency, this changes amongst heavy users of Netflix video streaming.
TDG found that 61% of moderate to heavy Netflix streamers cited online video usage as the top reason why they would do so. Only 24% of this group cited economic issues as their main rationale.
For the average Netflix user, however, the finding was reversed: only a third would cord-cut because they thought use of online video was substitutive.