Despite the hype, cord-cutting isn't making sense for consumers

DetailsMichelle Clancy | 19 March 2015

While there's interest in cord-cutting among pay-TV subscribers, the actual phenomenon isn't yet happening in large numbers.

According to focus group data from Sanford Bernstein, participants who had identified themselves as "highly likely to cut the cord in the next six months" said that the advantages in doing so were minimal.

And while most of the participants said that they subscribe to services like Netflix, Hulu and Amazon, most also cited the diversity of programming and convenient access as reasons to stick with their cable or satellite bill.

As for stripped-down pay-TV bundles, like Sling TV, and single-network offerings, like CBS All Access, the problem was the same — as a household-level product, such bundles can't serve the needs of everyone in the house. Illustrative of this is the fact that eight different participants, when asked to name their preferred ten networks, together named 30 different networks.

So, to replicate the diversity found in traditional pay-TV offerings, it would be required to take subscriptions to multiple over-the-top (OTT) services — and the collective price quickly racks up.