Over the last 12 months, 10 percent of U.S. broadband households switched, downgraded or canceled their pay-TV service, according to new research from Parks Associates.
The primary reason for the changes was a negative perception of the service value, including statements that it “wasn’t worth the monthly cost” or complaints that the provider increased the price of the service. Currently, 77 percent of U.S. broadband homes subscribe to pay TV, which is down from 81 percent in late 2016.
These findings were part of Parks Associates’ 360 View: Access and Entertainment Services in U.S. Broadband Households report.
“Poor perceived value is the leading factor driving cord-cutting, downgrading services or switching providers,” said Brett Sappington, senior director of research at Parks Associates. “It is a primary reason for consumer interest in online pay-TV services, which are typically available at a much lower price than traditional pay TV. Operator strategies to counter subscriber loss could include promotional options, including bundling OTT video services or the offer of free or subsidized CPE. Cord-cutters and cord-shavers indicate these types of offers could entice them to keep their traditional pay-TV subscriptions.”