VAB: Cord Cutters Seek Savings, Not Better Content

White Paper Minimizes Threat of Streaming to TV Networks
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Cord-cutters don’t have much spending money and they like watching TV shows, according to a new white paper from the Video Advertising Bureau that tries to minimize the threat posed by streaming video.

The VAB—a trade organization representing the cable industry and the broadcast networks—calls its paper “Disconnected Reality: Untangling the Great Cord Cutting and Streaming Misperception.”  It seeks to provide an answer to the question of what impact cord cutting has on the TV/video ecosystem, and what that means for marketers.

“What many in the media business have automatically interpreted as a statement of content preference turns out to be simply a cost-cutting measure,” the paper concludes. “The majority of cord cutters and cord nevers cannot afford multichannel TV subscriptions. These people are not targeted consumers for many of the most advertised products on TV today.”

It adds that the consumption of streaming video is not a young generation fleeing TV content. “It is predominantly TV fans adding flexibility and dimension to their video viewing. TV shows remain the vast majority of streamed programming, while MVPDs are fast expanding their exclusive catalogs of video on demand,” the report says.

Read the full story at B&C.