In part one of this two part blog on Cord Cutters and Cord Nevers, I spent a week without using my PayTV service, instead using OTT services to sate my need for programming to see just how feasible an option it is.
You can read the whole article here, but in summary, I suggest that the arguments for cutting PayTV are getting stronger all the time and in the UK at least, one could could attempt it quite successfully. But there are still many things hindering cutting ties to PayTV - for example exclusives that you can only get on channels such as Sky Atlantic (Boardwalk Empire and Game of Thrones) and the convenience that comes from all your TV in one spot, as opposed to multiple apps/services.
In the beginning of the last blog, I led with the following statistic. 18-34 year old's are 77% more likely to become cord nevers and 67% more likely to become cord cutter households [Source]. Of course, it could be quite easy to dismiss stats that say people 'might' cut the cord, people might do a lot of things but the fact is that they are, in ever larger numbers.
ComScore data published in October 2014 revealed that 24% of 18- to 24-year-olds do not have a traditional pay TV service. Of these people, 13% previously had pay TV service but later cut the cord while 11% have never subscribed to a pay TV service at all.
In the UK, it's possible to see a possible result of this shift as a report states that, last year, the number of TV households actually fell and by as much as 300,000 as people move to phones, tablets and laptops/computers.
And to see this cord cutting/shaving in action, Reddit (a huge social networking and news website where community members can all submit content on endless topics) there is a cordcutters sub community (subreddit), with 72 thousand unique subscribers, who all share advice, tips and help on how to cut the cord and get cheap/free streaming services legally. They have a dozen related subreddits many again with tens of thousands of subscribers.
As well as many people who cord cut because of costs, the views of this reddit user are also extremely common;
The problem for this person, is that operators are not keeping up with the changes in how consumers are viewing television - operators need to start getting creative with how they offer TV.
First and foremost it is likely that going forward operators are increasingly going to need to have some form of OTT offering and a robust means of providing live and catchup TV to subscribers through DVRs, mobile devices and laptops - The SkyGo app is an example of this.
This is not only a means of dealing with cord cutters by addressing their concerns and providing a solution, but as a service differentiator or perhaps even to keep up date with other service providers.
AT&T seem to have hit the nail on the head in addressing those three points by providing a service directly to those who want to "cut the cord"
A provider, like AT&T, with packages that provide the flexibility, choice and prices that customers want, are less likely to see people cutting the cord.
I believe the industry could make great efforts in eliminating the notion of cord cutters and cord nevers, but they'll have to accept the idea of a cord shaver who is perhaps more money conscious, who is viewing content different but ultimately still wants some, but not all, of the services.
As well as many people who cord cut because of costs, the views of this reddit user are also extremely common;
"For me, it was a combination of things... a lack of interest in a lot of what is on cable TV, combined with a desire for more flexibility in where and how I watch TV. More and more, I watch "TV" on devices other than my television. I watch on my iPad around the house while doing projects or chores, or I watch on my computer while browsing the web, etc."
The problem for this person, is that operators are not keeping up with the changes in how consumers are viewing television - operators need to start getting creative with how they offer TV.
Like a kid in a candy store
Choice, flexibility and price are the three key points, and they're all very much interlinked with each other.First and foremost it is likely that going forward operators are increasingly going to need to have some form of OTT offering and a robust means of providing live and catchup TV to subscribers through DVRs, mobile devices and laptops - The SkyGo app is an example of this.
This is not only a means of dealing with cord cutters by addressing their concerns and providing a solution, but as a service differentiator or perhaps even to keep up date with other service providers.
AT&T seem to have hit the nail on the head in addressing those three points by providing a service directly to those who want to "cut the cord"
"A $39-per-month bundle [with] 45 Mbps Internet and subscriptions to Amazon Prime and HBO. It's an acknowledgement that subscribers are smart enough to figure out the rest on their own. There aren't any sports channels, cooking shows or 24-hour news stations, and a phone service is completely separate, but these deals are designed for the Game-of-Thrones generation"It's about empowering the consumer and recognising that there are dramatic changes in the way people are engaging with TV content which is not going to change back. Without these sorts of packages and offers you're making a consumer who is on the fence, choose between having your service or not. And ultimately a consumer who chooses 'not' to take your service brings in no money!
A provider, like AT&T, with packages that provide the flexibility, choice and prices that customers want, are less likely to see people cutting the cord.
I believe the industry could make great efforts in eliminating the notion of cord cutters and cord nevers, but they'll have to accept the idea of a cord shaver who is perhaps more money conscious, who is viewing content different but ultimately still wants some, but not all, of the services.
