Are Cable TV Consumers Really Cutting The Cable?

With consumers continuing to be unhappy with cable providers, a trend known as “cord cutting” has quickly risen up. The concept has gained a lot of attention over the past couple of years especially since more Internet alternatives have become available.

Is cord cutting actually a trend or is it simply a threat that consumers are sending to cable companies?

According to a report from ISI Group, cable went from having more than 53 percent of the video market in 2010 to less than 50 percent in 2011:

While it appears that cord cutting is a growing trend, a couple of other reports actually indicate the opposite. Bernstein Research found that pay-TV subscribers grew last quarter. Although the increase (0.2 percent) wasn’t significant, it’s enough to raise some questions about the so-called trend of cord cutting.

What’s more, Business Insider Intelligence found that there was “no meaningful evidence to bolster the much-heralded ‘decline of TV.’” (Emphasis not added.) Alex Cocotas explained that, while cable has lost some subscribers, bundled Internet, telephone, and TV packages have grown.

It’s clear that a lot of consumers are unhappy with cable options, but these recent reports can’t help but make one wonder what is actually happening. According to Bryan Gonzalez, the Director of Social Entertainment Labs at the Entertainment Technology Center at USC, there are many challenges to cord cutting.

Services such as Netflix, Hulu, and Apple TV can be very effective, but there is a downside to some Internet options. For instance, with March Madness in full swing, basketball lovers may not be able to find all their favorite games online. In addition, a lot of the Internet services don’t have current content, which is a problem for some consumers.

As Gonzalez explained, many consumers are trying to get away from cable and are looking to Internet and satellite options instead. However, some appear, as the above charts suggest, to be going back to traditional content even though they aren’t completely happy with their choice.

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