Since TV began, consumers have wanted more — more channels, more options and more episodes. Cable and satellite providers swooped in to save the day with everything from documentaries about marketing agencies to cooking competitions. Then the fees began. Prices rose, and consumers were forced to sign up for channel packages that included more of what they didn’t want to watch than what they wanted to. The people were fed up.
Enter the internet. The internet provided an opportunity for consumers to view the entertainment they enjoyed on demand. Employees at marketing agencies could listen to a TV episode during their lunch break, and a busy mom on the go could let her children watch a movie on her smartphone. The more popular streaming became, the more consumers thought, “Why do I even need cable TV?”
Enter cord-cutting. Cord-cutting refers to a consumer movement away from traditional television providers toward relying solely upon internet streaming for all their media consumption. A 2010 study from Experian found that 4.5 percent of U.S. households were cord-free. In 2015, that number had climbed to 7.3 percent.
Cable companies are steadily losing customers to cord-cutting. Research conducted by TransDigm Group Incorporated found that 101 million households in the U.S. subscribed to cable and satellite TV in 2011, and predicted that the number would fall below 95 million households by 2017.
Millennials especially are drawn to a cord-free life. Their high dependence on technological devices and Wi-Fi signals lends well to a lifestyle that isn’t tied down by cable cords. The smartest broadcasters are embracing trends by creating their own streaming services alongside traditional TV channels, hoping to keep millennial audiences happy.
Marketing agencies are watching the cord-cutting trend just as closely as consumers are. Cord-cutting is a movement that exemplifies the new consumer psyche. Consumers don’t want to simply consume what they are given. They want products, services and, yes, entertainment that is personalized specifically to them.
