Forecasting Video Cord-Cutting: The Bypass of Traditional Pay Television

  • Aniruddha Banerjee
  • Paul N. Rappoport
  • James Alleman
Part of the The Economics of Information, Communication, and Entertainment book series (ECOINFORM)


Following the substitution of mobile phones for fixed-line phones (“voice cord-cutting”), a similar transition is now occurring for video services. In the United States, traditional pay television service providers are experiencing some revenue losses and slowdowns. Also, consumers are increasingly streaming or downloading long-form video programming (mainly movies and TV shows). This phenomenon—described as “video cord-cutting” or “over-the-top (OTT) bypass”—suggests that the business models of traditional TV service providers are under threat. There is, however, considerable debate about the severity of that threat.


Price Elasticity Video Content Federal Communication Commission Video Service Streaming Service 
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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Aniruddha Banerjee
    • 1
  • Paul N. Rappoport
    • 2
  • James Alleman
    • 3
  1. 1.Centris Marketing ScienceActonUS
  2. 2.Department of EconomicsTemple UniversityPhiladelphiaUSA
  3. 3.College of Engineering and Applied ScienceUniversity of Colorado—BoulderBoulderUSA

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