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.”