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Busting The Widely Spread Myths Of Cord Cutting

Busting The Widely Spread Myths Of Cord Cutting
Every day, we all hear how television media is dying. No one is predicting the death of TV, but the industry has a surge of articles related to cord-cutters, who are leaving traditional TV subscriptions.
These consumers want all kinds of content whenever they want and wherever they want,which is why they are shifting to the OTT streaming platforms.
Whenever someone in the industry sees television rating dip, it stirs the pot and whips up the fervor once again. Everyone starts to declare how television has reached its end. Nothing can be done! This is because many people in the industry connect rating drops linearly with the cord-cutters.
But, that is not the case all the time. It is necessary to give an objective way to look at cord-cutting.

Cord-cutting isn’t as rapid as you think

The biggest myth people have these days is that cord cutters are increasing at a rapid rate. And that is not completely true. A number of different data sets showcase that the growth rate of cord-cutters is between 1 to 2 percent in 2019. However, it is important to carry the 20 percent of Millennials who never subscribed to the traditional cable TV. But, there is still a big market subscribed to the pay-TV format. The reduction in the number of subscriptions is definitely down. Consumers increasingly desire more flexibility from their content providers, but the actual satellite or cable subscriptions are still playing on the high-level grounds.

Is cord-cutting happening on a global level?

There are many complex factors surrounding this question. Cord-cutting is more understandable when you figure out the economics around it. The biggest gap between OTT and pay-TV services is in the US. Hence, most users in America invest money in OTT subscriptions to fill the vacant space of content that is not provided by traditional pay-TV. So, many users have invested their money on traditional pay-TV and OTT subscriptions at the same time.
But this is not the case in many other countries. There is very little or no difference between what you get with packaged pay-TV and broadband that comes with an OTT subscription,which is why it makes no sense for users to cut their cords in many countries such as Germany, France, the UK and Spain. This has been possible due to the collaboration between the OTT providers such as Netflix and traditional pay-TV service providers. The television platform providers have included the OTT services in their packages, which is why consumers have almost no reason to cut cords.

What do you think?

It seems like cord-cutting isn’t the biggest reality of the industry right now. It is more like a way of describing the transition phase from broadcast to OTT. Whether it takes a cable or a digital connection, there will be some kinds of cord always. Not literally, but a provider of pay-TV will look at it that way for sure. So, the industry needs a better approach to understand the growth of OTT transition.
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