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Cable Industry Finally Fights Cord Cutting With Fewer Ads (dslreports.com)
The cable industry is slowly realizing that more advertisements and higher prices aren't the solution to cord cutting. Karl Bode writes via DSLReports: AT&T and Dish have explored offering cheaper, more flexible streaming alternatives (DirecTV Now and Sling TV, respectively), both understanding that getting out ahead of the cord cutting trend is the right play, even if the net result is making less money from traditional television. And on the broadcasting front, several companies this month made it clear they'll be reducing the ad loads on their programming, since charging users a subscription fee and socking them with endless ads is becoming a dated concept in the cord cutting era. Fox, for example, told the Wall Street Journal this week that the company would be reducing TV ad time in its content to two minutes an hour by 2020. Comcast NBC Universal says it's also following suit, having cut advertising time in its own shows by 10%, and reduced the overall number of advertising during commercial breaks by 20%. Given there's 83 million households still subscribing to traditional cable TV, many cable executives are under the false impression they can keep doubling down on bad ideas without the check coming due. But the data indicates this head in the sand approach simply isn't sustainable. Pay TV providers saw a reduction of more than 500,000 traditional pay TV customers during the fourth quarter, a decline of 3.4% total pay TV customers from the year before. That 3.4% decline was up from the 2% rate during in the fourth quarter of 2016 and a 1% rate of decline one year before that.
I made the decision this week to cut the cord myself and I dropped all my TV equipment today.
In an industry where high price/low value is cited by 80% of the people dropping their TV service, I was told that I had to pay an extra $60 a month to get a "free" internet speed upgrade to switch from a grandfathered TWC plan to a new spectrum plan with no other benefits. $145->$205.
Instead I opted to drop tv, drop my bill to $65, and get the "still techncially supposed to be free" bump from 60x5 to 100x10.
I just don't know how they think people wil pay $140 for Cable TV when there are so many solid alternatives that are under $40 if not under $30 a month (Sling, Hulu, Netflix, Etc).
They're only about 10 years too late.
Yep. If they had done this 10 years ago, they might have had a fighting chance. As it is, their service got so bad that they overcame people's resistance to change and drove them to the experiment of dropping the service. Now, dropping service has gotten such a good reputation that the rate of doing so is increasing dramatically.
If cord cutting hasn't reached critical mass yet, it is so close as to be nearly unavoidable.