Are Users Really Ditching Cable for Web Alternatives? Analyst Weighs In (9:26)

Posted on by Abby Johnson |

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The term “cord cutting” has gained a lot of attention over the past couple of years as more pay-TV alternatives have become available. A report from ISI Group indicates that cord cutting is becoming a trend since a growing number of people are dropping their cable subscriptions and switching to broadband or satellite TV operators.

However, information from Bernstein Research and Business Insider Intelligence suggests that pay-TV subscribers are increasing. To provide some clarity to the conflicting research, WebProNews spoke with Bryan Gonzalez, the Director of Social Entertainment Labs at the Entertainment Technology Center at USC.

According to him, there are many challenges to cutting the cord. One of the biggest challenges is the lack of bandwidth. He told us that this problem would likely increase as families grow and attempt to bring more rich content into their homes.

Another challenge is the fact that it’s difficult to get the most current content through subscription services such as Netflix and Hulu. Gonzalez believes that many consumers have tested the waters with these Internet options but are now going back to more traditional content methods.

Going forward, he told us that Internet services would “definitely” play a big role, but that cable, satellite, and broadcast options would still be prominent. He expects to see a hybrid model at some point in the future.

Have you cut the cord? Or, are challenges getting in the way? Please share.

Posted in: Analysis, Digital Media, News, Online Video
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