February 19, 2021
A longtime marketing advantage of over-the-top video was its cost-effectiveness to traditional pay-TV bundle. As SVOD services proliferate, the combined cost of services is narrowing the pay-TV divide, suggesting relative cost savings moot. Notably, new data from Cordcutting.com finds that pay-TV subs are spending as much on SVOD as cord-cutters — around $45 monthly — while maintaining linear TV access.
Thanks to comparable streaming budgets, cord cutting savings remain clear. Pay-TV subscribers spend an average of $168 a month on TV entertainment and broadband, roughly double the cord-cutter average of $86 a month.
Notably, cable and satellite TV customers subscribe to an average of 4.4 streaming services, which is greater than the 4.1 average for cord cutters. Indeed, pay-TV subs spend an average of $45 a month on streaming, which is greater than the $37 a month spent by cord cutters.
“Our findings suggest that convenience and other non-financial factors in streaming aren’t as important to the cord cutting trend as might be imagined,” read the report. “But, conversely, the high levels of streaming spending among cord havers suggest that convenience, original content, and other factors are more important — not to the narrow world of cord cutting, but to the broader world of TV entertainment.”