US TV subscribers get twitchy as service-switching, cord-cutting continue apace | Media Analysis | Business
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The alarm bells to the US pay-TV just got a lot louder with the publication of the TiVo Q4 2016 Video Trends Report that has revealed more people ditching subscriptions quicker than ever.

tivo q4 trends 9 March 2017The Q4 2016 Pay-TV and Online Video Trends Report found that in Q4 2016, 83.0% of respondents had a pay-TV provider and of the 17% who didn’t, almost a fifth cut their service in the last 12 months. This represents an increase of 1.9% quarter-on-quarter and 2.3% year-on-year. At nearly 20%, TiVo observed that this was the highest percentage of cord-cutters in a single quarter since TiVo began tracking them in the Q4 2015 survey.

Attempting to ascertain why people were cutting the cord, TiVo found some very clear messages in the Q4 2016 report, emphasising what had been discovered in the previous quarter. Indeed, the three main reasons for cutting pay-TV service were price/too expensive (80.1%); the use of an Internet streaming service, such as Netflix, Hulu, Amazon Video (48.3%); the use of an antenna to get the basic TV channels (27.2%).

Interestingly, and indicative of the readiness of all subscribers to looks for a deal, of the respondents who had pay-TV services, 10% switched providers in the last three months. The data showed that this segment continued to see steady increases both quarterly and annually as well as in the past two and three years. Also, 10% is the highest result since the introduction of this question in Q2 2013.

When asked if they plan to change pay-TV providers in the next six months, the report found 7.6% of respondents were planning to cut their pay-TV service, an increase of 2.0% quarter-on-quarter and year-on year, as well as 3.4% over two years, and 5% over three years. At this rate, said TiVo, the percentage of respondents planning to cut in Q4 2016 was the highest recorded since Q4 2012. In addition, 6.8% planned to change to another pay-TV provider while 3.2% planned to switch to an online service or app. A very significant 29.6% were on the fence. This meant that just under half of respondents (47.2%) could potentially leave their current pay-TV provider in the next six months. This group increased 2.3% quarter-on-quarter and 2.5% year-on year.