We have seen an increase in the trend when it comes to people ditching their cable TV services and welcoming internet streaming services and TV antennas. This trend is quite alarming for cable and satellite service companies. This upward trend of cord cutting has led to a dramatic drop in the share prices of the media companies.

Let us go through the 6 things that we need to about this dropping Pay-TV trend.

What exactly is this “Cord cutting” all about? Basically cord cutting means, anyone who has cancelled their contract with the cable or satellite TV service provider. But there are a lot of people who only cancel the Pay-TV contract. They still are in favor of the internet delivered service such as Dish TV, AT&T etc. Some of them count those people as cord cutters whereas some do not. Cord cutting has seen to be a growing trend that has been adversely having an effect on the cable and satellite service industry. The trend has been growing faster than expected.

Why the sudden need to cut the cord? One of the main reasons to ditch cable TV services is to save money. The rising cable TV monthly prices has started to hit the pockets of the viewers. It has led to a financial burden. When you change the cable TV plan to only internet service then in a way it also allows for some streaming services. The trend of cord cutters is likely to grow in this year and the coming year as well.

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What is the number of people who have cut the cord? In the most recent quarter, the numbers say that more than one million people have taken the step to cut the cord. Dish had to let go off more than 3 lakh subscribers. As per the latest report, five of the biggest cable TV service providers in US alone have seen a drop in the subscribers by 4.2%.

What is the savings for consumers? The amount of money that the user saves by cutting the cable bill would vary from one individual to another. There are some who may only rely on the TV antennas for fulfilling their daily dose of entertainment. This would mean that shelling out a one-time investment for purchasing the antennas. But those individuals who have an expansive viewing interests can shell out $100 or even more for the streaming services such as HBO, Netflix, Amazon and many more.

Why do consumers hesitate to ditch Pay TV? When a user is so accustomed to watching so many channels, it gets a bit difficult to ditch it all of a sudden. Consumers are not aware that they can view local or live sports in much easier and affordable way. The cable TV companies make use of this unawareness among the consumers and instill a sense of fear. This leads to a misconception among the consumers that without cable TV they would miss out on their favourite programs or live programs.

What about internet services? Consumers mostly forget about the cost of internet services. An average household spends around $60 for receiving high-speed internet. This is often bundled with other services as well. If they need faster connections, then the packages vary and also the price shoots up. In today’s scenario there is no room for low speed or low cost internet connections.