Every day, thousands of Americans cut the cord.
The bottom line is that cable costs are far too expensive. And, Americans are responding by turning to a streaming service at a much lower monthly cost.
According to researchers, roughly 33 million American adults no longer have cable. This represents a huge spike from the 25 million Americans without cable at the end of 2017.
This nationwide trend is expected to accelerate in future years. The entertainment industry is responding by adding even more streaming platforms.
Read on for a comprehensive cord-cutters definition. Explore why consumers are cutting the cord and what entertainment options they have.
What Is the Definition of Cord-Cutters?
A cord-cutter is someone who has elected to end their cable TV subscription. They no longer pay cable providers such as Verizon, Comcast, or Direct TV. Instead, they subscribe to one or many streaming platforms for entertainment.
In addition, cord-cutters are likely to drop landline phone services. Instead, they use cell phones and other mobile devices to communicate with family and friends.
Another term used to describe the streaming industry is over-the-top (OTT) media. Many people are left wondering what is OTT? Simply put, OTT means consumers are opting for streaming services as an add-on to their internet package.
Why Are People Cutting the Cord?
The primary reason that consumers are cutting the cord is to reduce monthly expenses. The bundled cost for cable TV, internet, and landline phone service is substantial.
The average cable TV bill, for example, is $107 per month. This does not include other services like the phone.
For comparison, the most expensive Netflix plan is $16 per month. Disney+ is going live in November 2019 and is just $6.99 per month.
However, many consumers are subscribing to multiple streaming services. They may subscribe to Netflix, Sling TV, and Amazon Prime. This combination of streaming services raises the monthly cost but is still considerably lower than cable.
Consumer surveys show that the average home has three to four streaming subscriptions. The average streaming service costs less than $9 per month. Therefore, bundling multiple streaming services still costs less than $40 in total.
What Streaming Platforms Are Available?
It seems like everyone has a streaming service these days. As discussed earlier, Disney is the latest entertainment giant to launch a streaming platform. Read on for a synopsis of the most popular streaming platforms:
Disney is the king of entertainment and they are ready to take over the streaming industry. They own exclusive rights to the most popular franchises like Marvel and Star Wars.
Disney+ will offer original TV content for these franchises. In addition, they will give subscribers access to the complete Disney and Pixar film library.
Netflix is rapidly approaching 150 million subscribers. You can watch Netflix on a smart TV, computer, or tablet. Some download Netflix on an Amazon Fire Stick.
Netflix produces its own movies and TV content. Some of the most popular content, like Stranger Things, is classified as a Netflix original.
YouTube is known for its free video content. However, YouTube offers a TV option that includes your favorite channels like USA or TNT.
This alternative to cable TV costs you about $50 per month. YouTube TV allows viewers to watch the news, live events, and sports.
Millions of Americans are sports fans and this is one area that Netflix and Disney+ cannot help. YouTube TV is one of a few platforms that carry networks like ABC, CBS, or Fox that host games.
There are several other platforms to choose from. Some users choose Sling TV for traditional networks and sporting events.
As streaming grows in popularity, some networks are creating their own platforms. CBS All Access is a perfect example of this. Premium movie channels like HBO have their own streaming platforms as well.
How to Advertise to Future Cord Cutters?
There are a number of different ways to advertise to cord-cutters. These people are unhappy with their current cable TV arrangements and looking to move on.
They are just waiting for the right message to kick this action into gear. Continue reading to learn some of the most effective advertisements for cutting the cord:
The primary reason that consumers are dropping cable TV is due to excessive costs. While the average cable TV bill is $107 per month, many consumers are paying closer to $200. This figure is even higher when adding in landline phone services.
Therefore, the most effective advertisement strategy is to highlight the cost savings. Demonstrate to potential cord-cutters how much money they will be saving per month.
Ease of Use
Another benefit to highlight in your advertising campaign is the ease of use. With streaming services, customers simply download the app to their smart TV or mobile device. The installation process is no harder than downloading Facebook and signing in.
On the other hand, cable TV requires in-person installation by a specialist. For Direct TV, a technician needs to go on your roof and install a satellite dish. Other cable TV providers have to install wires and potentially drill holes in walls.
One of the biggest complaints about cable TV is bad customer service and hidden fees. Customers sign up for a promotional rate and believe they are locked into a monthly price.
Then the promotion expires and the rate climbs considerably. At this stage, consumers are forced to deal with customer service.
This is not a pleasant experience for most and ends with a bad experience. Streaming rates are fixed and do not fluctuate.
Cord-Cutters Definition: A Recap
Millions of customers across the United States are dropping cable TV. For these fed-up consumers, cable TV costs too much and is not worth the trouble.
The solution is to switch to streaming services for a fraction of the cost. Consumers are signing up for streaming platforms like Netflix or YouTube TV.
If you learned a lot about streaming from this cord-cutters definition, check out our blog for more useful content.