Magid Survey: Cord-Cutting Intent Hits New High

MINNEAPOLIS: Magid’s annual Magid Media Futures survey has revealed that more respondents than ever intend to cut the pay-TV cord, canceling their pay-TV service and not signing up for a new one.

This year, 5.7 percent of respondents said they were “very likely” to cut the cord. This compares to 3.8 percent of pay-TV subscribers last year and under 2 percent when Magid first conducted the study in 2011.

The major reason, cited by 70 percent of the respondents, to cut the cord, is the large amount of other content available from subscription VOD services and OTT content providers like Netflix and Hulu. Magid also surveyed consumers about their interest in “skinny bundles,” smaller bundles of networks than the standard bundle of networks offered today by cable and satellite pay-TV providers. Just over a majority of respondents said they were interested in a skinny bundle and they said they would pay, on average, $48 per month, for their preferred skinny bundle.

“There is a slow, slow drip of cancellations for the pay-TV companies and it is growing every year,” said Mike Vorhaus, the president of Magid Advisors.

“The pay-TV companies will have to work hard to maintain their relationship with American consumers, through standard cable/satellite bundles, other services like internet access, and skinny bundles. The competition is tough between traditional and new media providers of video content to consumers.”