A recent study by equity research company Cowen reports that 33% of cable TV subscribers are paying promotional deal prices for their current subscriptions, rates that will soon expire, and bump them up into higher prices. The survey was conducted June 26-27 with 1,021 U.S. consumers for Cowen’s Q2 cable TV and satellite video report.
Cowen reports that 20% of those paying promotional rates for Cable TV plans are on deals that will expire within the next 21 months. Viewers will be in for a significant price hike once those promo rates run out. Only 10% of the survey respondents reported being grandfathered into a “price for life” plan that guarantees no inflated bills.
Although these cable subscribers are about to be paying exorbitant prices for TV, 76% of those surveyed by Cowen in the latest research said they’re using a streaming service along with their cable subscription. OTT streaming is increasingly becoming a staple even among die-hard cable fans. Of those surveyed, 59% reported using Amazon Prime Video with 40% subscribing to Hulu, up from 33% last year.
“The rapid increase is largely due to the onset of (1) the Streaming Wars (providing not just a multitude of choices but new low-cost SVOD as well as free AVOD entrants), (2) the current pandemic lockdown, and (3) the rise in unemployment as consumers test-drive low-cost/free solutions to rationalize video wallet share,” said lead report author Gregory Williams.
This just goes to show that even if you sign up for a cable plan at an introductory rate, you’re headed for a hefty price increase once that promotional window expires and will be stuck paying full price for your entertainment – content you could be getting via an add on to the streaming service you probably already have a subscription to.
Need recommendations on how to cutting the cord? Check out our updated Beginner’s Guide here.
Did you know we have a YouTube Channel? Every week we have a live Cord Cutting Q&A, and weekly Cord Cutting recap shows exclusively on our YouTube Channel!
Subscribe to our YouTube channel for our live Q&A, weekly news recap, and more.
Follow us for more cord cutting news, tips, and reviews.
Plus, join our Tech Support Facebook Group for cord cutting support from our community.
Sign up for our newsletter
Get our weekly newsletter, the latest deals, and much more.
Tmera studied journalism at Utah State University where her career began as Senior News Writer for the campus publication. After a few stops along the way, her love of writing and media led her to Cord Cutters News where she reports on breaking headlines, device updates, programming highlights, and more. Before joining the CCN team, Tmera worked in broadcast news, freelance writing, and radio.