Cord Cutters Would Pay More for a la Carte

"Cord cutters" are not the low value/low revenue "fringe" customers they have been made out to be, according to research by Strategy Analytics. The research house finds that cord cutters place a high value on content and are three times more likely to report wat...

"Cord cutters" are not the low value/low revenue "fringe" customers they have been made out to be, according to research by Strategy Analytics. The research house finds that cord cutters place a high value on content and are three times more likely to report watching paid VOD than economically motivated churners. Moreover, the findings indicate that 40% of cord cutters, compared to 20% of economic churners, would be willing to pay more for a la carte video service than they pay now.

"The pay TV industry has gotten it wrong on the topic of cord cutting," said Ben Piper, director of the Strategy Analytics multiplay market dynamics service, in a statement. "For the second consecutive year, our survey research clearly indicates that those who intend to cut the cord are high value, high-revenue customers -- not the deadbeats they have been made out to be."
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