Cord Cutting: The New Trend in TV Watching

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Sept. 24 (Bloomberg) -- Mike Vorhaus, president of Frank N. Magid Associates, discusses the rise in "cord cutters," consumers who are taking advantage of the availability of high-speed Internet connections and not paying for TV. He speaks with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

He joins us from new york.

There is this pick up you have noticed in cord cutters.

It is there, but it has been marginal.

Why don't you walk us through the numbers?

I read a number of bob eiger 's comments today.

Some people have reported it, including goldman sachs.

We have seen very tiny.

These are little tiny changes.

We are seeing them three years in a row now.

We have gone to almost three percent all the way up to 2.7%. there is a margin of error there.

We are also seeing the secondary data, some people are leaving paid tv.

This is not a big tidal wave, it is a series of small cuts early.

Let's talk about the age demographics.

People who are 25-34 or more likely to cut the cord than someone in the late 50's at least 60's. that will not surprise anyone but have some helpful numbers.

What can you tell us?

What these are fairly good sample sizes.

We have 1700 in the whole sample of paid tv.

We have a margin of error of lessor minus five.this is the age group that you really need to get them to start forming their cable pay-tv satellite tv commitment.

If you are losing the 25-34, you will lose the 35-49, so one answer forth -- so on and so forth.

They have a lot of other ways to drive loyalty and support.

I don't think that it is just going to be the series of values they are offering today.

Love park about some of the reasons.

Bob iger talked about a basic cable being a pretty good deal.

-- let's talk about some of the reasons.

Costs was a primary reason for people cutting the cord.

The slightly larger one was the over-the-top reasons top reasons.

Stuff like i can get streaming shows through a service like netflix.

What you make of that?

They add up to more than 100%. you have people that are multiple reasons.

What this clearly says is that you will not just have a rising economy am a we did not just have the dip in the great recession.

We actually see people leaving their pay tv, tiny numbers of people for all of these other alternatives.

In this great debate over cord cutting, a lot of people will cite the fact that a disney property, espn generates these big fees you ask a lot a people, do you you watch espn and when they said yes.

You asked them, are you likely to cut your cable, most of them said, no.

Give us the numbers.

Only 2% of people who are regular espn viewers said they were interested in cutting the cord which compares to 3% for the general population.

That is still an awful lot of young man, middle-aged men saying they are willing to give up espn.

That is one of the most protected elements of paid tv today am of the value of espn brands.

-- the value of espn brands.

You did some research on how much people are watching on their mobile devices.

This seems to play into what a company like his knee is trying to.

More identification, watching more on their devices.

-- this seems to play into what a company like disney is trying to do.

This is a tv set.

This is a tv set.

10% of all smartphone users are watching a full-length tv show at least once a week.

We are really in a tale of chinese.

We have tiny devices, tiny tv sets.

This is about the small pieces that are moving.

-- this is really a tale of tinies.

Thank you for joining us.

This text has been automatically generated. It may not be 100% accurate.


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