20% of Consumers Could Ditch Cable Subscriptions in 2016 [REPORT]

PwC US’ entertainment, media & communications (EMC) practice reveals its latest analysis on TV consumption trends, titled “Videoquake 3.0: The Evolution of TV’s Revolution,” which includes insights from more than 1,200 US consumers, focus groups and social media listening. With the availability of channel customization and high-quality programming via online streaming services, more TV audiences are choosing to downsize or opt out of their pay-TV services. However, according to PwC, the battle for subscribers is still very much alive.

Key survey findings include:

•     79% of US consumers subscribe to some form of traditional pay-TV
•     Of those who subscribe, 23% said they engaged in cord-trimming in the past year
•     16% said they had unsubscribed from pay-TV services in the past year
•     5% identified as “cord-nevers” and have never subscribed to pay-TV services

The average subscriber receives 194 channels, but regularly watches only 17. In response to an increasingly digital world and over-the-top (OTT) competition, pay-TV providers are making investments in the consumer experience and offering TV Everywhere for use across platforms, more on-demand streaming options and – by adding “skinny bundles” to their offerings – slicing and dicing channel packages into customizable pieces.

Consumers are clamoring for customization and control. When asked what would entice consumers to re-subscribe to pay-TV, 56% identified “being able to customize my package to exactly the channels that I want” as their number one motivator. And this sentiment is not exclusive to cord-cutters: 45% of current pay-TV subscribers said they most preferred an “a la carte” package of channels that they could customize themselves.

In the battle for eyeballs, consumers are inundated with choices. Across all groups – from loyal pay-TV subscribers to cord-nevers – consumers agree that “the amount of TV content is overwhelming.” PwC notes that “overwhelmed” doesn’t mean “dissatisfied.” New programming is still met with excitement, and incumbents and disruptors alike are expanding into new, novel types of content with diverse casts.

So much to watch, and so many ways to watch it. The battle for eyeballs is not just across services—it’s also across screens. According to the survey, 77% of 18 to 24 year olds are accessing TV content from the internet. Increasingly, their internet is mobile. The multi-screen environment allows consumers to view wherever, whenever.

In 2014, 91% of consumers said they could see themselves subscribing to cable in the following year. In 2015, that figure dropped to 79%, implying more than one-fifth of consumers could ditch their cable subscription in the next year. Consumers’ relationship with video content is fundamentally changing – and the shift shows no signs abating. According to PwC, content providers and distributors must rethink their business models to remain viable:

•     Re-position the bundle to compete with a la carte demands.
•     Redefine measurements to capture meaningful consumer behavior across devices and platforms.
•     Focus on content discovery to help consumers find and engage with content that’s relevant to them.
•     Rethink commercials and the value of eyeballs as viewers grow increasingly distracted by multiple devices.

To download report, CLICK HERE.