Published on March 8th, 2019 | by Brad Gibson1
Cord-cutters motived by price only, consumer survey shows
Consumers who depend on streaming services only are mostly motivated by price, according to a users survey.
The “BroadbandNow 2019 U.S. Internet, TV & Phone Shopping Study” from ratings company BroadbandNow showed satisfaction levels higher for streaming-only customers than those who have pay TV or a combination of pay TV and streaming.
Consumers who chose a combination of cable and streaming were far less motivated by price at 39 percent while those with cable reported the lowest satisfaction levels.
“Streaming TV customers are more motivated by total cost of service than customers of traditional TV products,” said John Busby, managing director of BroadbandNow. “In addition, because streaming TV isn’t tethered to a specific address, streaming TV purchasers were much less likely to list ‘moving addresses’ as the primary reason for purchase. A notable finding was that only 8 percent of streaming TV purchasers listed as their primary reason ‘they did not already have the service.’ This says to us that most customers in the market already have a streaming TV service.
“Because so many of these purchase decisions [of cord-cutters] were motivated by price, I believe this will challenge traditional providers to offer more flexibility to customers, such as providing smaller, bespoke content or channel offerings at a lower monthly price point.”
The findings estimated 39 million U.S. adults added or switched internet, TV and/or phone service in 2018.
BroadbandNow’s findings come from a combination of anonymized shopping and sales data, as well as online questionnaires, The company did not provide a margin of error for its findings.