Understanding the realities of cutting the pay-TV cord

As cable operators and other pay-TV players raise rates on video service to deal with rising content costs, a growing base of consumers is cutting the cord and opting to use an online video service like Netflix or Hulu as their main entertainment source. While cost is certainly a key consideration, convenience is also quickly becoming a factor. However, there are a number cost realities to consider, including the cost of getting a decent high-speed connection to support daily video streaming. According to Ookla's household value index, the median cost of a 16 Mbps connection is about $56 a month. Samantha Bookman, editor of FierceOnlineVideo, takes a look at the growing cost of going all-OTT in this new report.

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