New Study Shows the Reason People Cut the Cord May be Evolving
A recent study from media Analysts MoffetNathanson shows that the reasoning behind many cutting the cord could be changing.
In the past, most streamers and cord-cutters decided to take this route simply based on one factor: Price.
However, the latest report from MoffetNathanson notes that there may be another reason for users canceling their pay-TV subscriptions.
We want to know what you think of this latest streaming trend? Why did you choose to cut the cord?
Let us know in the comment section below!
The company’s Quarterly US SVOD Tracker Report shows that content offerings are becoming a driving factor for those cutting the cord.
You can read the entire report from MoffetNathanson using the link below.
MoffetNathanson – Q1 2022 US SVOD Tracker Report
With competition rising and new service options continually increasing, many are finding that the content they are looking for is no longer available through a cable service.
Instead, Streaming Apps and services now offer the shows and films that viewers crave.
The report from MoffetNathanson noted the following:
Linear network owners are individually moving more and more original content to streaming, which collectively weakens the viability of the bundle for all. It is akin to the mistake made when linear network owners individually agreed to sell content to Netflix, which ultimately weakened the linear system that paid their bills
In 2019, 50% of Amazon Prime subscribers claimed that they switched to the service due to price.
However, that number has decreased to just 34% in Q1 of 2022 noting a drastic decline in those switching solely based on cost.
Hulu is also noticing an upward trend in viewership with many opting to subscribe to the service because of their content selection.
Registrations for Hulu due to content rose from 15% in Q3 of 2019 to 23% in the first quarter of 2022.
Netflix saw similar results in this survey, however, it also noticed a drastic decline in overall subscribers.
The company saw a loss of 200,000 subscribers in Q1 of 2022 and expects to lose another two million in Q2 of this year.
It noted competition and password sharing as a few of the reasons for the subscriber loss, however, price increases are also likely a factor.
Netflix Increasing Prices Again for 2022
A letter to company shareholder’s noted this stating:
Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.
It will be interesting to see how this landscape evolves in the future with more and more people diving into the cord-cutting community.
We want to know what you think of the streaming industry and this latest report.
Let us know your thoughts in the comments below!
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