About 10% of US broadband households have switched providers, downgraded their service or cancelled pay-TV service in the past 12 months, says Parks Associates.
According to its 360 View: Access and Entertainment Services in US Broadband Households report, this turning away from pay-TV is primarily the result of a negative perception of the service value, including statements that the ‘service wasn't worth the monthly cost’ and complaints that the service provider increased the price of the service.
By comparison, 77% of US broadband households currently subscribe to pay TV, a drop from 81% in late 2016.
"Poor perceived value is the leading factor driving cord-cutting, downgrading services or switching providers," said Brett Sappington, research director at 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."
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