Parks Associates’ 360 View: Access and Entertainment Services in U.S. Broadband Households reveals that 10 per cent of US broadband households switched providers, downgraded their service, or cancelled pay-TV service in the past 12 months, primarily because of a negative perception of the service value, including statements that the “service wasn’t worth the monthly cost” or complaints that the service provider increased the price of the service. By comparison, 77 per cent of US broadband households currently subscribe to pay TV, a drop from 81 per cent in late 2016.
“Poor perceived value is the leading factor driving cord cutting, downgrading services, or switching providers,” advised Brett Sappington, Senior Director of Research. “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 subsidised CPE. Cord Cutters and Cord Shavers indicate these types of offers could entice them to keep their traditional pay-TV subscriptions.”