Research from discovery platform specialist Digitalsmiths notes that the pay-TV industry talks frequently about cord-cutting and cord-thinning, but the firm suggests in its Q2 2013 Video Discovery Trends Report: Consumer Behavior Across Pay-TV, VoD, OTT, Connected Devices and Next-Gen Features, that while consumers are both cutting and thinning their pay-TV services, an equally large threat is what Digitalsmiths has coined ‘cord-cheating’.
This phenomenon, cord-cheating, refers to the growing trend by consumers to seek on-demand content from third-party services and OTT services, as an alternative to their pay-TV provider. These third-party video services include Netflix, Redbox Kiosk, Hulu and more.
Based on Digitalsmiths Q2 survey of over 1,850 consumers, cord-cheating isn’t the only threat pay-TV providers need to be worried about. The survey results also shed light on key industry topics around consumers’ TV viewing habits, their perception of pay-TV providers, and opinions of next-gen features such as personalised video discovery.
According to Digitalsmiths, the results prove the competition facing pay-TV providers is coming from all angles now. Of survey respondents: