Cord Cutters And The Death Of TV - Business Insider
Quote:
Even though cable TV has had its worst year ever, cable TV revenues are still rising because companies are charging the dwindling number of customers more in subscription fees. According to analysts Craig Moffett and Michael Nathanson, those higher prices are "part of the problem" that pushes out poor subscribers — losing the TV business even more eyeballs:
"Of course, the fact that pay-TV revenue is still rising smartly is part of the problem ... We have always argued that cord-cutting is an economic phenomenon, not a technological one. ... Pay-TV revenue growth reflects rapid pay-TV pricing growth and that is precisely the problem. Rapidly rising prices are squeezing lower-income consumers out of the ecosystem."
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I'll put it in my words: what I get, is not worth the amount of money it costs! Customers are price sensitive for discretionary services... especially underused discretionary services!
We do not watch enough cable channels to make it worth $60 to $100/mo. Especially when 2/3 of what we watch is broadcast over the air on the major networks. Back to the Future!
Plus thier tactics are offensive to many customers... additional motivation to drop the service! They have the reputation of the Car dealers (used and new):
1) Charge one person more than another for the same product (compared to the people next door).
2) Change the deal! Now it costs more! Continue to raise prices every year for programming and equipment. Not talking about the new customer incentive!
3) Forcing customers off of analog cable TV to Digital TV to increase their revenue and profits.
4) Forcing channels on subscribers (channel bundles) they never watch to subsidize certain channels.