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Netflix Users More Likely to Cut the Cable Cord

28-Percent Consider Cutting the Cord
A recent survey by JP Morgan shows that 28-percent of cable subscribers would consider cutting the cord and going with Web-based video for their entertainment needs. Sure, 28-percent isn't a majority, but it's still a healthy chunk of customers -- and if those subscribers up and left, it would seriously eat into Big Cable's profits. Of course, most of those customers aren't jumping ship just yet. Of those willing to cut the cord, 63-percent would do so even if it meant losing access to live sports. That means 37-percent of those people would only cut the cord if the NFL, MLB, NBA and other sports leagues suddenly had a change of heart, and started streaming live games (something we don't see happening in the immediate future). So, claiming that 28-percent would consider ditching cable is a little misleading.

Almost half (47-percent) of Netflix customers who use the company's streaming video services are thinking about cutting the cable. And, with Netflix streaming service continuing to grow, that number could be a warning sign that the number of cord cutters will increase dramatically in 2011. What should worry the cable companies more is that 16-percent of those who would cut the cord were actually satisfied with their current pay-for-TV service. If even satisfied customers are considering abandoning your services, there is a serious need to reevaluate your business strategy. That, or you can just let Roku, Hulu and Netflix continue to push you into obsolescence.

Tags: cable, JpMorgan, media, netflix, streamingtv, streamingvideo, study, top, tv