May 30, 2017
Cord cutting as a trend continues strong, even if the press surrounding it hasn’t been quite as hyped compared to previous years.
As evidence of this, a recent report by MoffettNathanson shows that in the first quarter of 2017, nearly half a million US consumers cancelled their cable packages. But even more interesting, the report also suggests that young consumers, especially those moving out of their parents’ homes continued to ignore expensive cable packages altogether, with nearly 500,000 “should be new cable customers” opting instead to use services like Netflix and Hulu for their televised entertainment.
As Re/Code points, out this is a big problem for cable companies, as the trend in declining customers continues. From the Moffett report:
“Identifying the root cause of the acceleration in cord-cutting isn’t hard. It’s not demand (the demand has always been there). It is supply. Would-be cord-cutters and cord-nevers are finally being given options.”