As cable providers design their television offerings, they may want to take note of CableTV.com’s latest report.
Examining data from external studies as well as its own survey, CableTV.com found that though consumers have the choice of hundreds of channels — for example, Verizon Fios offers some 400 channels in its top-tier plans — consumers, on average, watch only about 15 channels.
With cable bills continuing to rise, that means consumers are paying more for channels they don’t watch, which could be a contributing factor in cutting the cord and moving away from cable providers in favor of streaming services, the report said.
Citing a MNTN Research study, the report noted that nearly two-thirds (62%) of customers think they’re wasting money on their average cable TV bill.
The research further found that consumers are paying an average of $147 per month for cable, receiving an average of 195 channels — meaning 180 (92%) go unwatched. If that same 92% of the average monthly bill is considered wasted, consumers spend a little more than $1,600 per year for unwatched channels.
As ChannelTV.com pointed out, the monthly per-channel cost for channels consumers actually watch — about $9 per channel — is roughly equivalent to the monthly cost of many streaming services.
Of course, cable packages come with a variety of offerings for a variety of fees. The majority of CableTV.com’s survey respondents were in the $50–$99 or $100–$149 per month ranges (14,767 total respondents), with another 6,700 saying they pay $150 or more for their services.
In a previous report, CableTV.com found that 82% of people who pay for cable TV also pay for at least one streaming service. Between that, the unwatched channels, and tightening budgets, providers and consumers alike are questioning the need to have access to several hundred channels.
“Traditional providers have begun to recognize this frustration and are joining a growing trend toward lower channel counts and more flexible TV options,” the CableTV.com report said.
Frustrated cable customers may represent an opportunity for broadband service providers. A recent Ipsos Omnibus survey suggested that broadband service providers that offer reliable, high-speed internet would benefit if their consumers could recreate their current cable programming lineups.
