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Cord Cutting Denial Alive And Well
Nielsen sticks to their guns, 'not seeing it yet.'
by Karl Bode Tuesday 09-Nov-2010
As we've been covering at length, cable operators and the stock analysts who push their stocks on clients have been trying very hard to downplay this year's new TV cord cutting trend, because it would require an end to the cable industry's bi-annual rate hikes and an overall culture change toward one where the sector actually gives a damn about what consumers think. After first denying cord cutters existed at all, undeniable defections the last two quarters have forced a change in tactics. Instead of denying cord cutters exist, cable's now intent on insulting these users as poor and unimportant.

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Back in June, TV industry statistician Nielsen proclaimed that cord cutting was "purely fiction," a statement that was immediately refuted by second quarter earnings reports that had a very non-fiction bent. Despite even Verizon's CEO acknowledging the trend and a third quarter that showed continued cable TV subscriber decline, Nielsen's apparently sticking to their guns on this issue. The stat firm claims that because they're not seeing an explosion of broadband-only households:

Idell cited some small stats about the number of broadband-only households, noting that a mere 6 percent of broadband households had cut the cord. Looking back over the past year, if there had been actual cord-cutting, Nielsen would have seen those households grow. But the audience measurement company’s figures showed that there has been no movement at all for that small group. "So will people cut the cord?" Idell said, posing the the question. "Maybe in the future, but we’re not seeing it yet."

Nielsen appears to have attended the Comcast school of semantics, wherein if a consumer cuts the cord because of price, you technically can't call them a "cord cutter," which is silly semantics. Apparently we need a new name for people tired of endless rate hikes for overlarge channel bundles. Any ideas?

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TWCNot

@pacbell.net

TWCNEO ... not willing to keep customers

So I call up TWCNEO today, because my bill was getting just a little to high (price increases)...

They were not willing what-so-ever to try and give me a discount. Saying...Well, were sorry about your decision.

!
Bobcat
Premium
join:2001-02-04

Re: TWCNEO ... not willing to keep customers

When I called up Cablevision to disconnect, the first thing they did was try to upsell me to a more expensive service. Hello! What part of "My cable bill is too high" don't you understand?

carp
Rejected

join:2002-10-30
Reviews:
·RoadRunner Cable
said by TWCNot :

So I call up TWCNEO today, because my bill was getting just a little to high (price increases)...

They were not willing what-so-ever to try and give me a discount. Saying...Well, were sorry about your decision.

!
When my promo is up, I'm canceling. Will save over $40.00 a month
Contents
Contents

join:2003-04-10
Circle Pines, MN
Reviews:
·Comcast

Re: TWCNEO ... not willing to keep customers

I walked into Comcast yesterday with all my equipment to discontinue the TV service.

I was told I should downgrade to the "Basic 1" package since I still have internet. My bill would actually be 3 dollars cheaper if going with the "Basic 1" package alone with my current internet service.

Sticking to my intentions, cable TV was discontinued. Instead of saving much money per month, my internet service is rising $45 per month without having cable TV service bundled. I do have !ultra so that will probably be my next downgrade.

Hooked up the good old antenna then ordered up a Sony streamer.
--
www.EdgeGamers.org

maartena
Elmo
Premium
join:2002-05-10
Orange, CA
kudos:1

how do they measure?

Could it be that those who did not cut the cord are simply watching more TV to make up the rating differences? After all, we still have a slow economy, and watching tv you already paid for is cheaper then going out to do stuff.
jmmilner

join:2001-11-20
Yorkville, IL

Objectivity?

Nielsen has about as much reason to be objective here as the bond rating agencies did with the sub-prime mess. If Nielsen starts telling the networks that there are fewer people watching their programming, the networks will find somebody telling a nicer story since people watching determines ad rates.

At this point the best face that cable operators can put on the data is that they are retaining customers with the most desirable demographics (basically young and well-paid) and that those who may be cutting the cord really don't matter to advertisers as they either don't have money to spend or aren't the type that buy based on TV ads.

RatingsGuy

@verizon.net

Re: Objectivity?

All Nielsen does is provides measurement data to customers. They do not skew the data to benefit the cable and station providers. It's called as it is measured. It's that simple.

To imply that Nielsen is providing data like brokers did during the "sub-prime" mess, couldn't be farther from the truth.

DaMaGeINC
The Lan Man
Premium
join:2002-06-08
Greenville, SC
kudos:2

um

I would never pay for tv service as long as I live. I am sick and tired of Ad's and crappy programing. I have my own ON demand service that is completely FREE! with no ad's and I can watch whatever I want when I want it.
--
I hate idiots and stupid questions. If you dont know something, figure it out the best you can, if that fails, then ask someone
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

The point is SOO missed here..

"As we've been covering at length, cable operators and the stock analysts who push their stocks on clients have been trying very hard to downplay this year's new TV cord cutting trend, because it would require an end to the cable industry's bi-annual rate hikes and an overall culture change toward one where the sector actually gives a damn about what consumers think."

Really? It doesn't matter in the end what the consumer "thinks".. it's what the consumer DOES.

How is this really important? If the cable operators and stock analysts downplay what every is alleged to be down-played, in the end, if a consumer cuts the cord or disconnects or can't pay their bill, that's all that's important.

They can analyze things all they want - let them.. that's the industry they invented to give themselves a paycheck and feel important. What an "analyst" says has no bearing on what a consumer does... what a consumer does IS what gives an analysts a job.

So I think you have it a little backwards here Karl. Companies can be in denial all the want.. they can also be right as well. In the end, while they're trying to second guess and you're doing the same, the consumer is going to adjust their life how they see fit... so who's the real players in this game anyway?

.. the consumer.

There is a group that say the world will end in 2012.. just because they say it doesn't mean it will happen does it?
jjeffeory

join:2002-12-04
USA

Re: The point is SOO missed here..

I'm sure you've heard the phrase "perception is reality..."
That's why what a consumer "thinks" matters... It turns into what a consumer DOES.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: The point is SOO missed here..

said by jjeffeory:

I'm sure you've heard the phrase "perception is reality..."
That's why what a consumer "thinks" matters... It turns into what a consumer DOES.
.. just as "hindsight is 20/20" which is what I believe is happening here. Example: Say that the upper mid-west has a more mild than normal winter this year.. come March, the group that says "It's going to be a mild winter" will be dancing all over those that say "It's going to be colder than normal" saying that they knew all along. This is part of what *I* believe is going on here. But I don't think it's just perception at play here.. the providers, most noticeably AT&T wireless, with their new 2gb plans + overage, and Comcast with a 250 gig cap that made big news, has also most definitely swayed behavior.

So, was it the exaflood that never happened? or, was behavior steered and controlled to slow growth? This is where I think a presumptuous "we told you so" is being pulled.

Camelot One
Premium,MVM
join:2001-11-21
Austin, TX
kudos:1

How does Nielsen work these days?

It used to be a box at the house, do they still use those? And are we still talking about a small pool of people's viewing habits used to reach a conclusion on what all of America is watching?

Wouldn't the people who bother with having one of their boxes be FAR more likely to pay for TV than the rest of us? They obviously care more about it TV than say....me. Which could explain why Nielsen isn't getting an accurate picture of cord cutting.

And finally, if we assume that Nielsen ratings are still used exclusively to determine how popular/good/profitable a show is, based on what is on TV these days, we must also assume everyone with a Nielsen box is a complete idiot.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1
Reviews:
·Vonage
·DIRECTV

Re: How does Nielsen work these days?

said by Camelot One:

And finally, if we assume that Nielsen ratings are still used exclusively to determine how popular/good/profitable a show is, based on what is on TV these days, we must also assume everyone with a Nielsen box is a complete idiot.
Bingo.
That explains the mind-numbing proliferation of inane "reality" shows like Housewives of New Jersey and crap just like it.

RatingsGuy

@verizon.net
Nielsen still does the "People Meters" and Diaries as measurement across the country.

Some Nielsen homes don't have Cable and get their TV through OTA. They count just the same as people who do have Cable or Satellite.

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT

I don't think the recent decline is due to cord cutters..

It's more the economy than anything else.

BBR (Karl) recently argued that the economy was worse last year and hence, any declines would have shown up then versus now.
But, they're showing up now so it must be "cord cutters".

I disagree with that. While the economy in the form of job losses may have been worse a lot of people still had income in the form of unemployment and savings they were living off of. And unemployment benefits were extended time after time when they were due to run out.

And so, people didn't cancel their cable despite losing their jobs because they still had the means by which to pay for it. Now, it's becoming a different story as the recession drags on. People are running out of benefits ..out of money and savings and being forced to downgrade one of the last luxuries they were trying to maintain...that being their tv service.

Personally, I think that despite the recent losses, they've been very modest for a nation that is now consistently running an almost 10% unemployment rate and what these editorials miss is that fact and that many industries have done much worse. Some losses are bound to now happen and not just to cable but to many things that people have been otherwise trying to maintain.
What the editorials also seem to miss and don't even try to explain is that if these people were cutting tv ..their internet bills would be going up seeing these cable operators discount that for tv customers. But they aren't losing internet customers which would seem to suggest that it's purely for monetary and budget reasons that they're now forced to cut out the tv portion.

Is some due to "cord cutting"? Yes. But I think it's the much smaller part versus the economy as a whole. And it's just now catching up to the cable operators seeing people have been out of work for so long and benefits are running out.
rahvin112

join:2002-05-24
Sandy, UT

Re: I don't think the recent decline is due to cord cutters..

There is no doubt that seperating out what is economic based cord cutting and internet based cord cutting is damn near impossible. But the issue that is the real danger is that people are doing it when the possibilities for internet delivered video are pretty scarce at the moment. Netflix and Hulu are pretty much it if you want to stick to legal channels. With that limited selection it's still happening, even if the numbers are low. This is the danger sign that's being ignored. Prices have gone up to much, people when given a poor option and a little fear are doing it. What happens if something like GoogleTV is successful?

Right now the legal framework and the collusion between content creators and delivery systems will prevent the eventual movement of all entertainment to internet centered devices. The system is being destroyed by every content provider creating a dozen channels of garbage and forcing them to be purchased with the one or two channels people actually want. Disney started the trend with ABC family being a forced purchase with ESPN and has continued the trend with now almost a dozen ESPN channels being a forced purchase for everyone. Every other provider dog piled the Idea and is now force bundling at least 6 garbage channels with every channel with actual viewers. This more than anything is what's raising TV rates in the US and it's unsustainable. Either Congress forces the providers to sell channels individually and on the same terms to every purchaser or the entire system will collapse with some massive cord cutting in a few years with most of the people going the illegal route.

We're less than a decade from the people who grew up downloading illegal content being THE prime target 25-40 married with kids demographic. If the system isn't fixed before we get there the system is doomed to self-destruct under it's own pricing and forced bundling. The only hope is that someone like Google can come in and get the content providers to stop colluding with delivery or get Congress to forbid it. I'm not holding my breath on either, personally I think we will end up with a serious cord cutting/ illegal downloading problem (that's going to be damn near impossible to end) before they realize their mistake. The future is internet delivery and individual purchasing of channels through something like GoogleTV.

SSX4life
Hello World
Premium
join:2004-02-13
kudos:2
Reviews:
·RoadRunner Cable

Re: I don't think the recent decline is due to cord cutters..

I've cut the cord and i've been without cable since.... well... forever.

Only have Netflix and internet. Get everything I need through skype for phone and record all my over the air tv shows to my PC and or stream them though netflix.

Media comanies need to wake the @#$@ up. I totally agree with rahvin112 on this one.
--
Fog Project - Open source computer imaging and TFTP server project | Supporting open source software and development since 2000

Knowledge is power... Silence is golden... but duct tape is Silver =)
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3
"Doomed.." I love these predictions and terms tossed around so easily.

The fact is that things aren't going to die. Many of the people who analyze the industry are just as flawed as many of the opinions on this very site.. and both sides often miss the point AND all angles.

There is no 1-cause of why numbers are dropping so the sooner people realize this, the more realistic the non-conversation can go on.

What people here often forget is that the opinions here on BBR do not necessarily reflect those of the real world. This site happens to have the same affect as a bug zapper has to flying bugs.. ie: there is a big concentration flocking to this site so the odds that like-opinions will be the dominant view is pretty good.

There are PLENTY of people who don't really care about this. People have bitched for a few decades now about Cable TV, even satellite, and it's not going to change. Even if people don't like their cable or satellite bill, many will continue to subscribe. The masses are not going to put that much effort into seeking out a way to get a show on some box they'll likely buy at Best-Buy to hook up to their internet connection that many bitch about as being crappy. (yes, some dramatics for effect) Americans are creatures of habit and change doesn't come easy around these parts.

Another thing people over look.. the "who" that everyone says is "cord cutting".. Um, the younglings that don't have cable today, are likely not to be cord cutters for 1) they won't subscribe in the fist place TO have a cord to cut.. 2) the ones that are in the underground black-market of video already prefer that.. so the young people issue has already been established.. they're not cable/satellite customers - we get it! Now put them to the side.

... how many OLD people die each year? How many dead people need cable Are they cord cutters? .. call them that if you want, but some people call that attrition. There is going to be loss to that as well. If the young people aren't subscribing, and the old people are dying.. there's part of the number. YES, there has been a dramatic change in the last few years.. it's called the "meltdown of 2008".. the economy has been at it's worst in MANY years especially since the whole broadband revolution. This IS going to have some effect on things. Is the old/young issue all of it? no.. but it's ALSO part of it

.. the fact is that there are MANY reasons that are causing losses.. what one BIG thing Mr. Karl also forgets is that to lose half a million subscribers nationwide in one of the worst economic periods of modern history? .. nothing news.. there have been large losses in cable before. Somehow, now that internet video is here, it's the latest thing to compare the cord cutting to, for those that have a game to cheer on.. right?

.. and.. "Top Five Cable ops see.." yea? The top 5 make up the overwhelming majority of operators that really add up anyway.

One last question... what does all this really matter? .. there's choice.. this is what happens. Some choice is to simply not buy.. it happens.. and it doesn't mean that these "losses" are all going to hulu either.

For these 500K losses... a small increase in revenue makes up for the difference - did they not teach that in math class? There's something just as attractive to quality over quantity as well.

Sorry, but the future isn't internet delivery, at least direct from the source. The content producers don't want to be the providers, that's why cable and satellite exists. What you get on the internet, for MANY years to come, will be trivial compared to what we have now... my guess is at least a good 10 years or more before any major, and real stir, comes to the delivery system.

exRolman

@embarqhsd.net

Re: I don't think the recent decline is due to cord cutters..

I agree with most of what you said except for the time line. I have observed that over fifty percent of new home electronics now have Ethernet connections. Once the ease of use is like using the remote of a cable box, acceptance will accelerate. Also once these devices start to replace older and broken devices we see some real “cord cutting”. There are now a few websites that will let you view any televised sporting event in the word. Netflix is going to deliver in HD and 5.1 sound. Just search websites for video and you will be amassed at what is now available. I am slowly building my home electronics system to be ready for internet delivery. All I need is 6 to 10 Meg internet connection and I will have phone, internet and video. The best part is I will control it all!!
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: I don't think the recent decline is due to cord cutters..

Eh, I can be swayed on the time line to be honest. However, I think that time line is going to be dictated on many players coming to terms - they've all done one thing well and that's proving that they won't, not easily.

My new TV has all the apps built in which makes it nice. (It's a sony) But, half of the apps in it, IMO, are kind of worthless. Many of the music apps and theater sneaks are, well, a waste of use. (Getting the TV set up was a bit difficult as well with the registration process too)

Further, there's the "connecting" itself.. The cost is going to ultimately shift from TV/Internet priced at a flat price point to the meter billing model and the public is going to really have a hard time with that.. the government is going to do it's part to "help" which in my opinion will only make things worse. (Reference: the government in CA did it's part to help phone consumers and now Caller ID is $10 a month, up from $4.95. The Feds tried to help lower cable rates back in the 90's and the average consumer bill went up, not down)

And, like you, when I moved last year, I made sure that cat5 was ran to every room of the house, and on most walls in the main rooms too.

aztecnology
O Rly?
Premium
join:2003-02-12
Murrieta, CA
said by rahvin112:

There is no doubt that seperating out what is economic based cord cutting and internet based cord cutting is damn near impossible.
I fit both categories. I just cut the cord yesterday, FiOS TV gets shutoff this Saturday at the end of my billing cycle. I'll be FiOS interwebz only, relying on the intertubes/netflix/hulu only going forward and saving about $70 a month. I did it to save money, but I've also been waiting to have a decent alternative to getting content. Now just happens to be the right time.

This holiday season and going forward is going to see a lot of change; appletv, roku, boxee, google, et al, disruption in the marketplace is just starting to take place and will take time to go mainstream...
--
.:|:. aztec being aztec...™

baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI
Reviews:
·Comcast
·magicjack.com
More future truths.

Does anyone REALLY think here that NetFlix is ***ALWAYS*** going to be only $10/mo? When broadcasters start seeing revenue loss due to less views, and movie studios start seeing less people going to the theater, dont you think that they will try and protect their assests? Mainly, raising their costs to Netflix, and Netflix passing that onto the consumer.

The "cord cutters" can undercut the cable companies for now, but do you really think that the prices are going to stay steady, or even go down? TV shows, which is the basis of this all, havent done down in price to produce (which nills the arguement that computers have gotten cheaper)

fAcEtIOUs
Premium
join:2002-03-03
kudos:4

Informed Consumers

Apparently we need a new name for people tired of endless rate hikes for overlarge channel bundles. Any ideas?
How about "Informed angry Consumers"?

I didn't "Cut the Cord". And the economy hasn't hurt me at all. But I did cut back on the Cable TV pkg by moving from the highest priced Premium, everything included tier, to something in the middle. That dropped $55/mo from the cable bill.

And I did it for 1 reason - the product Comcast was delivering wasn't worth what they were charging for it. Being able to afford it wasn't the issue - not wanting to be ripped off was. I always demand to get value for money expended.

Rockafella21

join:2010-04-08
New Castle, PA
Reviews:
·Verizon Online DSL
·DSL EXTREME

I believe it...

I knew it was only a matter of time before this happened. Cable companies just simply think they are untouchable. I use to have Comcast. I had their triple play offer with all the HD channels, best internet package, and phone service. It cost me over $200 dollars a month. They treated us like garbage. Then, I found out from the neighbors they were going threw the same situation. I ended up switching to our only other option for internet service (Verizon DSL) not that they are much better. However, when you go through a reseller like DSL Extreme they seam to put pressure on them and get things done. As for TV, I switched to Dish Network. I also have Verizon for telephone. I got rid of Comcast all together for the way they treat their customers. All my neighbors fallowed as well. I must say the $50 per referral from Dish is nice, so is the $20 per referral from DSL Extreme. It didn't surprise me at all. The FCC and LFAs really needs to get more involved in cracking down on these companies.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: I believe it...

said by Rockafella21:

It didn't surprise me at all. The FCC and LFAs really needs to get more involved in cracking down on these companies.
Yup! .. because we all know how the FCC needs to get involved with entertainment, if you can even call it that. The FCC has nothing better to do than crack down on a free-market business, which by all popular definition around here, delivers 300 channels of crap anyway.

So with Netflix, OTA, and other options, why does the FCC need to get involved and crack down, and on what? .. give the consumer a price THEY want? ..how about keep the government out.. get your crap in alternate sources available to everyone now, and let the market work and "fall on it's face".. its only until THAT time that things will change.

The more people try to interject the government to "save the day".. the quicker it gets no where. TV is a GREAT place to demonstrate this theory.. no one NEEDS 300 channels of reality cooking, home decorating, house building, friend-back-stabbing, daytime court TV shows.. people WANT to have it.. but they don't NEED it.

The FCC has no business cracking down on anything - especially nothing that's life saving. Go get your netflix, fill up your ques and be happy. When the industry starts to lose business, they'll crack under pressure and if the consumer is smart, they won't take anything less than real change. THAT is how things are SUPPOSED to work.

So, another way to put it.. the FCC can crack down.. they can crack down on the idiot consumer that keeps buying into something they clearly say they don't want. The consumer is too stupid to stop - and addicted.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1
Reviews:
·Vonage
·DIRECTV

A new species is born

mpellegrini

join:2009-02-22
Tacoma, WA
Reviews:
·Click

I am a cord cutter!

...and I just wish I'd done it years ago.

I was paying about $22 a month for basic digital cable. Here in Tacoma, that buys you the regular off-the-air channels and a few mostly unpopular cable channels. All I really watch is news.

Only one local TV channel here streams their newscasts, and that's only during the week.

Based on that, I felt I really needed to get an antenna.

I went to »www.antennaweb.org/aw/Welcome.aspx, and using that, I was able to find out what type of antenna I needed to get off the air TV (and what direction to point the antenna).

Antennaweb told me I needed a small multi-directional antenna - just to play it safe, I spent a few extra bucks and got a medium-sized, multidirectional antenna.

I now get crystal-clear HDTV reception on 33 channels off the air! Total cost - about $120 - or say 5 month's cable bills. That's more channels than I got with cable, and the investment will pay for itself in just 5 months!

All the premium content I want is available off the web - I have a PS3 which has Netflix, there's Hulu and all the rest.

Cable: what a rip!

Sr Tech
Premium
join:2003-01-19
New Fairfield, CT

Re: I am a cord cutter!

Did the same here, OA HD and Netflix. Came out ahead by 140.00 a month...

speedlaw

@verizon.net

cord cutting

I would cut the cord (cancel Dish) in a heartbeat if it was just me and the wife. I get NYC DMA OTA wonderfully, and have a Sony HDD 250 to record that OTA in HD. (sadly Sony no longer sells DVRs in the US market) Along with a fios internet connection and Netflix, I'd be OK for what TV I watch-sadly, my kids would not. (my town does not have Fios TV for local govt reasons...I think they are running an experiment to see how many folks download tv, be it legal or torrent, without the fios tv.)

Netflix would cover all my movie needs, and with streaming cover the rest. I don't have any torrents or illegal content, yet could kiss off "cable" now.

As long as I have kids who care about Hannah and such, though, not yet.

Dish isn't really bad-I pay $65 per month for two setups, whereas my local cable co would be 110 for the same deal. I can't see any reality where I pay for my cable company, unless I was in rental housing and had no choice.
sludgehound

join:2007-03-12
New York, NY

Less job hiring reported today.

Well a return to less job hiring this past month. At some point the excess cash going out to something as unnecessary as cable tv with it's ever rising cost for less return has to backfire.
Just getting the regular local NYC channels on TW 2-13 with 10 acting as NY1 and roadrunner for the rest is enough for me.
Cut the cord cost. CCC like in First Great Depresssion.
Firefly2003

join:2010-02-14

Who needs cable?

I would never pay for cable or satellite I don't like constant commercials hawking their crap I don't need and its just plain annoying and people out there are tired of it , tired of high cable and satellite rates, tired of useless channels and bundling, tired of garbage programming and sheeple mentality that drive people to watch mediocre and bad taste in viewing entrainment. People want entertainment without the in-your-face ads every 5-10 min on TV and the net as well.

See 8 replies to this post
Bobcat
Premium
join:2001-02-04

New name

quote:
Apparently we need a new name for people tired of endless rate hikes for overlarge channel bundles. Any ideas?
Terrorists. If you're not with the cable company, you're against them.
rody_44
Premium
join:2004-02-20
Quakertown, PA

truth be told

I here the same thing day in and day out from these so called cord cutters. That is i wish i could keep it but i cant afford it. Karl knows these people as people that are just fed up with high prices. Cable is the bottom of the food chain and as the economy gets worse or even stays the same not much will change. Last year some of these so called cord cutters were on unemployment for 2 plus years and were living in homes that they didnt make a mortgage payment on in two plus years. Unemployment is no longer a never ending option and foreclosure isnt also.
Years ago unemployment lasted 26 weeks max and if you didnt pay your mortgage in three months you got booted. It was a good incentive to go out and get something, anything. These days people just feel entitled. They sit home collecting their unemployment and not paying anything. At the end of the three years when nobody wants to hire them because they stayed unemployed they just say life sucks and everybody had it in for me.
Bottom line is its not cord cutting its people that have no money.

treetop1000

join:2003-11-07
Lexington, KY

Economics 101

This is how it's supposed to work, people. Modern economics 101.
If you price your product too high, people will not buy it and they will look elsewhere for similar and cheaper product.
Paying a service to judge how well you are doing has always seemed shady to me.
I mean, if I give you three million a year to say how great I'm doing, what's the incentive for me to tell you the truth?
If say you're doing good, you keep paying me.
If I say you're doing crappy you stop paying me.

So why do you think JD Powers kept saying Toyota was "the best" in customer satisfaction, even during the stuck gas pedal fiasco?
$$$$$
itguy05

join:2005-06-17

Cord cutting costs more

If I were to cut the cord it would cost us MORE for the same level of entertainment. My Internet would go up $30, I'd need a computer for the TV or an AppleTV. Then I'd need to waste time to find my shows and watch them.

No thanks. Easier to program my DVR and let it sort it out.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Cord cutting costs more

Heard of over the air antenna? Tivo can record your shows.

cutcosts

@insightbb.com

Lots of Good "Free" Content

We dumped basic cable a long time ago (2001). It's not because of a lack of income, but rather the poor value for the price paid. I mean to have to pay for television service and then also get as many or more commercials as OTA television is crazy. In addition, cable television channels unique to cable TV also fill time slots with PAID INFOMERCIALS! I remember when cable TV first came out and there were no commercials. Some would say just get a DVR and program your device. I'm not interested in wasting my time or money on that.

So we have been watching OTA television occasionally over the years and have been quite happy with it. We don't have to worry about our young son watching junk on cable, and he prefers PBS content anyway. As a matter of fact, we have been watching a lot more PBS since leaving cable.

Fast forward to the present, and the content available for free is amazing. I can stream PBS shows, network content, etc. from our laptop to TV via high speed internet. The OTA HD quality is great with an inexpensive antenna mounted outside the house and run through the coax the cable company installed many years ago. And my older son has NetFlix for $9/month at his apartment and the content available from this service "on demand" is huge. I forgot to mention the free and substantial collection of DVDs available to check out at the local library. There really is not enough free time for all this free stuff, which is another good reason not to pay for cable TV.

I realize that our paid taxes support many of these free services. We subject ourselves to the ads on the free network programs that we occasionally watch. We also donate to PBS and support their minimal advertising, high quality content model.

The future is all about low priced "on demand" content.

I suggest the cable TV companies adjust their offerings to reflect this new reality.
OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA
Reviews:
·Verizon FiOS

Two Steps I Would Like to see

For cord cutting to really take off, I think we will need to see:

-A combination of creative people and people with money get together to create the first high quality Internet Only Video channel. They would create video content that is only accessible on the internet. The content would have to be original and compelling. If they do this and are successful, there will be an avalanche of follow on "channels".

-Live sports that are on the Internet and can be easily streamed to your TV/Computer. I think this exists, but it does not seem to be very big. It needs to be made easy to use.

With these two events, I predict that cord cutting will grow dramatically. Of course the incumbents are doing every thing they can to stop this.

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