In the debate around cord cutting, one reality is often overlooked: Aggressive price promotions are helping prop up the number of video subscribers among cable and phone companies. And that appears to be creating a false sense of security throughout the TV industry.
With cord cutting not taking off as expected, there’s less pressure on entertainment companies to retreat from their constant demands for higher fees. That suggests cable operators that want relief from programming cost increases should stop propping up video numbers by discounting TV when selling it in a bundle with broadband.
This past quarter highlighted the issue: Despite signs that more people are eschewing pay TV in favor of broadband-only service, overall pay-TV numbers showed little change.