A recent study from cg42, a research firm, took a close look at both what cord cutters are saving and what it is costing pay-TV providers.
The study talked with 1,119 US customers and estimated that pay-TV providers lose about $1,248 per cord cutter annually. That’s because the average cord cutter saves $104 a month—about 56% of their bill—from dropping cable TV.
“The consumer is discovering they don’t need the mean, evil cable company to get the content that they want, and they can get it for a better deal,” said Steve Beck, managing partner at cg42.
Cg42 says that every 800,000 cord cutters cost pay-TV about $1 billion. In total the estimated 20 million cord cutters and cord nevers cost pay-TV companies $25 billion every year.
That number is expected to continue increasing as more people cancel cable every month, and it could quickly climb because there are still an estimated 90 million pay-TV subscribers in the United States.
One of the most interesting parts of study is the confirmation that cord cutters save money. A recent attack on cord cutting is the idea that cord cutters do not save money; however, according to this study cord cutters save on average $104 a month.
Source: Wall Street Journal
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