Why Consumers Continue to Shift Away from Pay TV - eMarketer
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Why Consumers Continue to Shift Away from Pay TV

Price is still the top factor

According to a Q2 2017 study by TiVo, more than 85% of cord-cutters said that pay TV services were too expensive, and that cost was one of the main reasons they chose to cancel their cable or satellite service.

In fact, a higher percentage of those surveyed named price as a factor than said the same in Q1.

Aside from price, many respondents also said they cancelled their pay TV service because they’re using an internet streaming service like Netflix, Hulu or Amazon Video.

Appealing Features of Netflix According to Netflix Users in North America, Q2 2017 (% of respondents)

User behaviors more conducive to subscription video-on-demand (SVOD) services, like binge-watching, also reflect the decline of cable—as does these services’ original content. Indeed, 7.5% of cord-cutters said they cancelled their pay TV subscription because the bulk of their TV viewing consists of original content on streaming services, like Netflix’s “Orange Is the New Black.”

And when asked about the features that attract them to Netflix, over half said price plays a key role in why they use the service.

By and large, consumers are gradually shifting to digital video subscriptions and away from pay TV services.

This year, 176.4 million US adult internet users will stream or download video content at least once a month, eMarketer estimates. That number is expected to increase to 190.2 million by the end of 2020.

Monica Melton

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