Are People "Cutting the Cord" Just People Who Can't Afford Cable?

Illustration for article titled Are People "Cutting the Cord" Just People Who Can't Afford Cable?

193,000 people quit their paid television plans last quarter. Sounds like a lot, and it is! But as any horse-breeder will tell you (I would guess?): it's about quality, not quantity. And the people leaving cable behind, GigaOm reports, aren't the ones the cable companies care about. While high-value consumers—the folks who'll shell out for multiple DVR boxes and fire up the VOD services—are staying and paying, it's the basic cable grunts who are saying goodbye.

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So is the Netflix/Hulu combo not as potent a draw as we thought? In these cases probably not. But the more the cable providers try to squeeze out of the folks who can afford it, the more they're going to start looking to streaming solutions. That's the line the Comcasts and TimeWarners of the world have to walk. And honestly, I still think they may already have crossed it. [GigaOm]

DISCUSSION

bennygesserit
Benny Gesserit

In a weird side-effect, giving up cable gave us a break on the apartment rent. For years, basic cable was bundled into our apt rent - we stopped watching anything on it a year ago & we don't even have a TV attached to it. If we watch something, we stream it.

A couple of months ago, the building owner sent a note saying "The cable company is terminating agreements with us, so if you want cable you'll have to arrange it with them. As this is a financial burden on you, we're forgoing a rent increase this year." Woo hoo, no rent increase for me - Thanks Cable Company!

Agreed, the building owner's not being THAT generous - they would have had to pay a monthly fee for the building they no longer have to come up with. I feel it was rather sporting of them to openly pass the savings along. (Some of the placed I've lived would have just as happily yanked out the cable in July and quietly raised the rent in Oct/Nov.)