U.S. Broadband Households Abandoning Pay-TV Services

DALLAS — Ten percent of U.S. broadband households switched, downgraded, or cancelled their pay-TV service in past 12 months, according to international research firm Parks Associates, a market research and consulting company specializing in emerging consumer technology products and services, in its newly released report, "360 View: Access and Entertainment Services in U.S. Broadband." The report attributes the trend to 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 percent of U.S. broadband households currently subscribe to pay TV, a drop from 81 percent in late 2016.

Negative Consumer Perception
"Poor perceived value is the leading factor driving cord cutting, downgrading services, or switching providers," said Brett Sappington, senior director of research, Parks Associates. "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 subsidized CPE. Cord Cutters and Cord Shavers indicate these types of offers could entice them to keep their traditional pay-TV subscriptions."