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December 07, 2010

Back in style: rabbit ears and free TV

When you lose 300,000+ customers over 6 months, maybe its time to reconsider the price/value equation you're offering customers.

...Many pay TV customers are making the same decision. From April to September, cable and satellite companies had a net loss of about 330,000 customers. Craig Moffett, a longtime cable analyst with Sanford C. Bernstein, said the consensus of the industry executives he had talked to was that most of these so-called cord-cutters were turning to over-the-air TV. “It looks like they’re leaving for the antenna,” he said...
I'd argue that this trend is part of the "new normal". The depression is causing a lot of people to reevaluate what is necessary and what is luxury in their lives. Whenever you can move some perceived necessity into the luxury column, that allows reallocation of funds to those luxuries that you really desire.

Blowing off a $90/month cable bill allows for more eating out, some movies, paint to repaint several rooms in a house, etc. Over the span of a year, you could buy enough tools and materials to re-trim a crib with mouldings you made yourself, or build a fancy wall unit, etc.

I find this this new consumer pragmatism encouraging. Cable exec's probably not so much.


digg this
posted by Purp at 02:53 AM

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