It looks like the cord-cutters have made their mark on the TV landscape, because
the majority of Americans think cable TV has become "unaffordable". The numbers don't
lie and the trend is only growing; Comcast lost 106,000 cable television subscribers
in the most recent quarter while DirecTV shed 346,000 and Charter Communications
lost 66,000. The big question is why, and the most basic answer is "to save
money," according to a new 'Hollywood Reporter'/Morning Consult poll. It's not the
only reason but it points to pain ahead for traditional television. A whopping 90 percent
of Americans say that the most important factor when deciding to subscribe to a TV
or streaming service is cost. Meanwhile, 56 percent say cable is "unaffordable"
and 47 percent say the same about satellite, while just 17 percent deem
streaming unaffordable. Those who are 18-29 are spending more time with video
games, social media and short-form YouTube content, which makes things even
trickier for entertainment conglomerates, even those with their own streaming
product, like CBS All Access and HBO Now. According to Morning Consult VP
Tyler Sinclair. "Connected activities are drawing younger Americans away from
TV experiences. People are just homing in on affordability, especially
younger consumers," The shift to social media and video games could eventually catch
up with Netflix, though that company is currently firing on all cylinders, with 137
million subscribers worldwide. But it already has Amazon and Hulu to contend with
and it's getting more competition from services Walt Disney and WarnerMedia planning
to launch next year. Jess Cohen of Investing.com. Points out that,
WarnerMedia and Disney are slowly taking their content away from Netflix in
preparation for their competing products, but Sinclair isn't sure that that is the
correct course of action.
Check out THR.com for a deeper dive into the numbers and the what might be in store
for TV's future. For the Hollywood Reporter News, I'm Ben Myers.
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