Why Aren’t "Cable-Keepers" Cutting the Cord?

July 5, 2018

By Alex Weprin

So called "cable-keepers" — consumers who still pay for and watch TV through a traditional, linear pay-TV subscription — remain a significant chunk of the U.S. population. According to comScore's recent "State of OTT" report, some 28 million households pay for cable/satellite but don't stream OTT.

Still, many in the industry have been wondering why those people aren't making that switch to streaming bundles, often available at lower price points than traditional bundles.

A new report from Telaria, the sell-side video ad platform, suggests that consumer confusion is key to answering that question. Specifically, not only are consumers confused by the sheer number of OTT options (55% of respondents felt that way, per the report), but many are under the misconception that in order to get live content like sports or awards shows, they need to pay for a traditional subscription.

Telaria emphasized that "education" about the multitude of streaming options in the market, as well as better "discoverability" of live content on streaming services, could entice some cord-keepers to reach for the metaphorical scissors.

It may not even be that big of a leap. Telaria's research found 76% of cable-keepers subscribe to at least one streaming service, but may just not be aware of its potential.

"The world of OTT used to be just about streaming video on demand. But with the steady growth of new live streaming platforms, access to live television content is becoming more accessible outside of a set-top box," Telaria head of research and insights Karen Ring tells Digital News Daily. "Our research suggests that as OTT options become easier for consumers to understand and navigate, the impact on cord-cutting could be significant."

Source

"Why Aren't 'Cable-Keepers' Cutting the Cord?" MediaPost, 7/5/18.

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