Trends Report

Marketers: Don't Worry About Cord-Cutting

Focus On The Audience Fragmentation Trend Rather Than Industry Turmoil

February 5th, 2014
JN
Jim Nail
With contributors:
James McQuivey, PhD , Luca Paderni , Samantha Merlivat , Jeff Wray

Summary

With the rise of over-the-top video services, there has been much speculation that consumers will cancel their cable or satellite subscriptions — or "cut the cord" — to watch all their programming via the Internet. But our data shows that these fears have been overblown and that any reduction in pay-TV subscriptions has been driven more by the economic downturn than by new technologies. Forrester believes that the future will hold small decreases for pay-TV providers, mainly among younger viewers who delay or forgo subscribing. But for most viewers, the ease of knowing exactly where their favorite programs are, the improved content access, and the annoyance of managing multiple small subscriptions will outweigh what, in the end, will be minimal savings. This report will show marketers how to avoid being distracted by exaggerated headlines about turmoil in the pay-TV industry and focus instead on staying in touch with constantly changing consumer viewing habits.

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