Cord Cutting? No. But Cord Shaving ...?
November 8, 2012 09:12 AM
Cable and satellite operators just had a tough quarter in which there was some erosion in their subscriber base. Comcast’s Matt Strauss said that cord cutting isn’t an issue for the cable provider, but that there has been “cord shaving,” where customers downgrade some premium services. He pointed to new services like WatchESPN as features that are helping providers to keep subscribers. Strauss: “As we continue to find ways and add more value and offer more choice, the market has shown people will pay.” Turner exec Jeremy Legg said the big change is that household subscription numbers aren’t growing in the same way they used to. Legg: “If you believe in the pay-TV model, then you have to enhance the pay-TV model. We don’t do a very good job as an industry of marketing the value of the package. If you take your family out to a movie and buy popcorn and a coke, you just spent $50.” By comparison, Legg said cable offers unlimited access to content at a fair price over a month-long period.
Return to top