Cord Cutting

    Cord cutting is a problem that is new due to new streaming services created by Netflix, Hulu, and Amazon Prime. Cord cutting is the practice of ending a cable or satellite service and even opting to get rid of your land line. People have many varied reasons for why they end their monthly payments for cable and satellite. 

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    One of the main reasons for people getting rid of their cable and satellite is because they want to save money and pay for less expensive streaming services. Some cable companies do not want to lose customers, so with this they have started their own streaming services known as HBO now, Showtime OTT, CBS All Access. In my opinion this is a smart way for them to create revenue.  

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People in today’s generation do not use landlines as much as they once did. Since the invention of the cell phone, almost everyone has gotten one and uses it more than their landline. Therefore, a lot of people have decided to get rid of their landline so they could save money. I know that my family stopped using their landline 2 years ago because we all have iPhone’s and did not have a need for a landline because no one called that line anymore.  

Although, it seems as if cord cutting is saving consumers money, there are some problems with it. Cable and satellite TV are easier to use and offer more programs and options than some streaming services do. Also, most of the steaming services do not offer the streaming of live sports, events, and news.  

    Cord cutting right now is saving people money, but it is predicted that the cost of streaming services will continue to increase. For an example YouTube live has increased from $35 at launch to $50. Another issue with the streaming services is that you cannot skip commercials unless you want to pay even more a month. For Hulu if you want to skip commercial's you must give an extra $6 a month to the company. The ads are also very repetitive and can get annoying because they are every few minutes. Sometimes the same ads even play back-to-back. 

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    To continue, cord cutting skyrocketed when the pandemic hit. More people started using online shopping, multiplatform gaming, and streaming services. By the year 2024 it is predicted that 46.6 million households will no longer pay for cable. That is approximately 1/3 of the United States which is crazy to think about.  

“Consumers are choosing to cut the cord because of high prices, especially compared with streaming alternatives,” said eMarketer forecasting analyst at Insider Intelligence Eric Haggstrom. 

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    Having the news and live sports on cable and satellite Tv is what is keeping most people to continue to pay for the service. Yet, slowly streaming services are offering sports and soon everything will be offered on streaming services.  

    Overall cord cutting has many positives and many negatives. If you are looking to cut the cord, I recommend doing a lot of research to see if it is the right fit for you and your family. Cord cutting will continue to expand with the upcoming new streaming services and new generations that will likely want to stream more than pay for cable and satellite.