According to a new study, the reasons behind cutting the cord might be shifting. This is shown by recent data from media analysts MoffetNathanson.
Cost used to be the main factor for cord-cutters and streamers. They made the switch in the past largely to save money.
But MoffetNathanson’s latest report points to a potential new reason. It seems that users are dropping their pay-TV for other reasons, too.
We’re curious about your take on this trend. What made you decide to cut the cord?
Share your thoughts in the comments below!
The company’s Quarterly US SVOD Tracker Report indicates that content is now a major factor. Many people are cutting the cord in favor of better content options.
You can access the full MoffetNathanson report through the link provided below.
MoffetNathanson – Q1 2022 US SVOD Tracker Report
Competition is fierce in the streaming world, with new services popping up all the time. Because of this, viewers are discovering that their favorite content might not be on cable anymore.
Instead, many viewers now get the shows and movies they want through Streaming Apps and other streaming services.
Here’s what the MoffetNathanson report observed:
Linear network owners are increasingly pushing original content to streaming platforms. This weakens the appeal of traditional cable bundles. It mirrors the mistake they made when selling content to Netflix individually. That weakened the linear TV system that supported them.
Back in 2019, price was the primary motivator for a lot of Amazon Prime subscribers. In fact, 50% reported switching for cost savings.
But that figure has dropped sharply. In Q1 2022, only 34% cited price as their main reason, showing a big shift away from cost as the sole factor.
Hulu’s also seeing an upward trend. Many new subscribers are joining because of the content selection the service offers.
Content-driven Hulu registrations jumped significantly. They rose from just 15% in Q3 2019 to 23% in the first quarter of 2022.
Netflix saw a similar trend in the survey results. But they also experienced a significant drop in overall subscribers. The company lost 200,000 subscribers in the first quarter of 2022.
They anticipate losing another two million in Q2. Netflix blames the decline partly on competition and password sharing. Price hikes likely played a part, too.
Netflix Increasing Prices Again for 2022
A letter to shareholders acknowledged this, stating:
As we anticipated, streaming is overtaking linear TV. Netflix’s content remains popular worldwide. But our high household penetration, coupled with the prevalence of account sharing, creates headwinds for revenue growth. This is especially true given the increasing competition in the streaming market.
As more people embrace cord-cutting, the future of the streaming landscape will be fascinating to observe. We’re interested in hearing your perspectives on the industry and this recent report.
Share your thoughts in the comments below!
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