Cable Subscribers VS. Cord Cutters
Problem AT&T and DIRECTV wants to showcase DIRECTV NOW as the new way to watch TV. They want to encourage downloads of the
app to cord cutters without cannibalizing existing DIRECTV premium subscribers. In order to do this, it’s imperative
to examine the differing behaviors of cable subscribers vs. cord cutters to uncover how they tie into their
television consumption behaviors.
Subscribers
Cord Cutters
Subscribers
People are still paying for cable According to a 2016 Extreamist report that surveyed 785 cable subscribers across a wide range of demographics, people still have cable for: live sports, more TV show options, convenience or simply because they’re not sure what to replace it with.
Behaviors of subscribers • • • • •
Experience FOMO—fear of missing out Host/attend watch parties Watch the newest episode each week the moment it airs More disposable income Watch live sports events, music and film/television award shows the night of instead of the video highlights on the following day • Interact with online community/social media during shows, i.e. live tweeting • Enjoys being at the forefront of pop culture relevancy—”Hey, did you see who went home on The Bachelorette last night?!”
Insight
Subscribers Value Immediacy Subscribers hate spoilers and would rather watch a television event for themselves instead of hearing about it the next day from peers. It’s much easier for them to go turn the channel to the football game as opposed to tracking down the right stream online. They love their vast channel options since it allows them watch whatever whenever they choose—maybe even flipping in-between commercial breaks. Immediacy is key for subscribers since they don’t want to miss out on their favorite shows, and it’s as easy as turning on the television and turning the channel.
Cord Cutters
Cutting the cord Not getting competitive/reasonable rates/pricing Having to pay for channels/content I don't watch Being nickeled and dimed with multiple fees and charges Could not longer afford paid TV/too expensive New customers getting better deals than existing ones All my favorite content was available elsewhere Having to be locked into a contract Trying to be sold on services/option I don't need/want Did not value the content/service provided
Feeling like they don't deliver on their promise/care about me as a customer 0
Source: cg42 "2016 Cord Cutter & Cord Never Study.“ Sep 28, 2016.
10
20
30
40
50
60
70
Behaviors of cord cutters • No FOMO • Television is not main source of entertainment • Prefer binge watching as opposed to waiting an entire week in-between episodes • Tech savvy, uses multiple devices for streaming • Appreciate the ease and freedom of streaming services as opposed to a complicated cable bill • Don’t like the idea of paying for channels that go unwatched
Insight
Cord Cutters Value Convenience While subscribers will make sure to plan their day around the time their television program comes come on, cord cutters prefer to watch their programs at their leisure, on their terms. Since they’re more tech savvy, finding the right stream for events is not an issue—they may even have the ESPN app already downloaded for an upcoming game. Even if their cord cutting means fewer options, they’d much rather have that instead of knowing they’re paying a substantial amount of money to have channels they don’t even watch. For all these reasons, convenience is key for cord cutters.
Thank you!