More Customers Consider Cutting Back on Cable

Posted Tue May 4, 2010 at 07:00 AM PDT by

Based on a Yankee Group survey, as many as 1 in 8 will be scaling back or cutting the cord completely.

Television is a landscape that's still broadly dominated by cable, but increasing numbers of customers are cutting back, or dropping their subscriptions altogether. According to the latest survey from Yankee Group, 1 in 8 cable customers will either scale back their service or drop it in the next 12 months.

While dropping cable is certainly the lesser chosen of the two paths, eliminating premium channels is becoming more common. Waiting for a movie to come on, or hoping it's available on demand, just doesn't stack up when compared to the cost and benefit associated with Netflix or Redbox rentals. And if you're willing to wait a bit, those Showtime and HBO shows do end up streaming, or on Blu-ray.

Part of the problem, according to Yankee, is the rising cost of cable. Programming fees are going up, which means subscription prices must to go up to maintain company profits.

Source: Yankee Group

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Tags: Cable Service, Industry Trends (all tags)