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 and cord cutters.
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
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.
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Behaviors of cord cutters • No FOMO • Television is not main source of entertainment • Prefer binge watching as opposed to waiting an entire week inbetween 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
Thank you!