Americans have started to become sick and tired of the increase in prices for their cable or satellite coverage. Over the past 14 years, cable, not including fees, taxes or promotions, has increased an incredible 97 percent. As a result, a total of 44 percent of Americans have decided to “cut the cord” and stop paying for cable television.
The scary thing for cable companies is that they had first assumed that including broadband internet was supposed to benefit cable television, but it hasn’t. A total of five million people stopped paying for cable and broadband subs between the beginning of 2010 and end of 2013.
Instead, viewers are relying more on free wifi to watch their favorite movies, shows, and sporting events. For example, at the workplace, in coffee shops, and even on school campuses, there is free wifi. This easy access to free internet makes it more convenient to watch television on people’s tablets, smart phones, or computers using Hulu, or Netflix.
Experian Marketing Services conducted a survey of 24,000 U.S. adults who are Netflix and Hulu subscribers and concluded that these households were three times as likely to not have cable subscription as the average household.
Experian Marketing Services also found that while a surprising 42 percent of adults watched video content on their smart phones, the real backbreaker for cable companies was when potential subscribers were able to stream video to their televisions at home.
Those who can stream shows or movies to their television screens are three times as likely to stop cable all together.
Along with the increase in prices, the ongoing frustration between customers and Cable Company’s customer service has amplified the past couple of years. Subscribing to Netflix or Hulu will eliminate any interaction with cable companies and has kept their customers happy.