Would a Poor Economy Mean an Increase in Cord Cutting?

Every week a new story highlights huge subscriber losses for cable giants and networks like Comcast and Disney

Every week a new story highlights huge subscriber losses for cable giants and networks like Comcast and Disney. As prices go up, more people are cancelling their subscriptions and moving away from cable packages in a bid for entertainment freedom. For some, this foray into cord-cutting is worth the planning and technology required to stream their favorite content and connect to digital services. For others, the familiarity of the cable package outweighs the rising cost and hidden fees that come with pay-TV.

But, what happens if the economy experiences another recession? When people are hard-pressed to meet even their basic needs, will cable remain so appealing? A November report released by the Motley Fool predicted a decrease in cable subscribers during future times of economic distress. Whether or not this means that those subscribers would make the switch to cord cutting will depend on several factors.

First, the cost of streaming services will have to remain relatively low. Not just in comparison to cable, but in conjunction with the economic climate at that time. Next, the technology necessary to cut the cord will need to be affordable or common. In times of serious economic stress, a person may be happy to stream Netflix from their phone, but unable to invest in a smart TV. The cost and availability of high-speed internet will also play a part in keeping cord cutting affordable for everyone.

Changes to the streaming and digital TV industries have raised some concerns over the future costs of cord cutting. Keeping the services affordable is essential to maintaining a stable customer-base regardless of a changing economic climate. However, the one thing that everyone can still agree on is that cable is expensive, and cord cutting remains a more cost-effective option.

Patricia Howard


Article Author

Patricia Howard is a freelance journalist and Netflix enthusiast from rural Indiana. She has a bachelor''s degree in communication with a concentration in journalism. When Patricia isn''t writing, she enjoys catching up on her favorite shows with her husband and seven children.

Disclaimer: This article may have had additional images, links or data that was added by this site's editor.

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