Manatt, Phelps & Phillips, LLP, a multidisciplinary, integrated professional services firm and digital media consulting company, Vorhaus Advisors, co-sponsored a large national survey of Americans 18 years and older, about their media and digital behaviors. The study had over 2,000 respondents which were matched to the U.S. Census.
Cord-Cutting clearly remains a major threat to the traditional pay TV industry of cable, satellite and teleco providers. For a number of years now most pay TV companies (not the SVOD service) have had on-going, drip-drip loss of subscribers. This year the Manatt-Vorhaus Digital Strategy Study show that 10% of pay TV subscribers intend to cancel their service and not replace it with another pay TV package.
The study also showed that 41% of the total adult population felt TV was their most important method of getting entertainment. A separate choice was Connected TV which 11% of the respondents said was their primary choice for entertainment platform. Nonetheless, the big-screen kingdom of TV does have threats at their gates. In the coveted 18 to 34 year old demo, only 19% reported that TV was their primary method of getting entertainment content. Over 54% of these younger consumers aid that smartphone, tablet or PC/laptop was their primary method for getting entertained.
Furthermore, consumers say that they are mostly driven to buy/obtain other services to deliver long-form entertainment content – 68% of consumers say they are driven by other content they can get digitally and not have to pay for. The number #1 single reason for wanting to cut the cord was the cost of cable – another problem facing the cable/satellite industry.