Consumers are ‘cutting the cord’ on Pay TV and subscribing to Streaming Services
We’ve evolved from a world where people gathered around small television sets to watch NASA’s first rocket launch— to being surrounded by screens constantly. Where once TV sets held a place in the living room, televisions can now be found in virtually every room in the house including bedrooms, kitchens, and even bathrooms.
TV’s have seen a lot of changes over the past decade, but the most recent and drastic change is happening now: The cutting of Cable TV.
Consumers have begun ‘cutting the cord’ on traditional Pay TV packages and began to subscribe to streaming services like Netflix, Hulu, and Disney+ for a variety of reasons. It’s a matter of convenience, price, and choice.
The average cable package is over $100 and comes packed with hidden fees, add-on packages, lengthy contracts, and hardware, that requires installation. There’s nothing convenient about it. Network prices are always changing which forces your traditional Pay TV providers to up their prices. This means consumers are trapped in lengthy contracts that allow prices to go up at any time. They don’t have a choice, which is why many consumers are taking the month-to-month approach to getting their content.
Switching to streaming previously meant having to give up all your favorite shows. However, over the last decade, streaming services have changed from hosting outdated movies to becoming their own content producers and garnering their own following or ‘loyalists’, to their particular brand.
The question is now changing from ‘how would I see new episodes?’ of things like “Lost” or “Game of Thrones”, to ‘which streaming services should I get?’
With hard-hitting streaming services providing exclusive content, it might be hard to choose but most of them cost below $20. This means you’re getting more bang for your buck with current content and can choose a couple of services, without hitting that benchmark set by traditional TV.
Consumers are not just tired of having to buy new equipment but also waiting a week or two for their cable box or satellites to be installed and dealing with lengthy, complicated contracts. Consumers feel that the current method of Pay TV allows their provider to change prices or hide things in their bill. With streaming, all of this is placed in the hands of the consumer. Most services are month-to-month, meaning that when prices increase for your chosen service, you can opt-out right away and require no hardware. Instead, streaming services can be accessed through Apps on your digital streaming media devices like your smartphone or tablet, TVs or web browsers. You’re not confined to one room or even your house. This means watching TV while you’re on that long road trip, plane ride, or burning through your lunch break.
Television packages are getting pushed aside, not because they aren’t good, but because they’re just not matching up to the needs of current consumers. We want services to be worth our money and right now, that ball looks to be in the court for streaming services.