DALLAS—An increasing number of U.S. internet households are characterizing themselves as “cord cutters” according to Parks Associates' latest research from its Video Services Consumer Insights Dashboard.

According to the report, 56 million (46%) of U.S. internet households are “cord cutters,’ while 12 % are “cord nevers,” who have never subscribed to any sort of traditional pay TV.

The Dashboard research service tracks adoption trends and shifts in the video services market, including households who are disconnecting in favor of free-to-air broadcasts or online video services.

Service providers are adapting by offering competitive pricing, bundling options, and hybrid monetization strategies. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services shows the demand for lower-cost alternatives, and subscription-based platforms continue to experiment with tiered pricing and content exclusivity to retain customers.

"Cord Nevers represent a unique opportunity for streaming providers," said Jennifer Kent, Vice President, Research, Parks Associates. "By definition, this segment of the market has not paid for traditional pay TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be."

For leading streaming services, many consumers prefer the basic tier with ads over the more expensive premium tier with no ads; as of Q3 2024, 59% of subscriptions across the eight leading SVOD services are basic tier with ads subscriptions:

• MAX (formerly HBO)
• Netflix
• Disney+
• Discovery+
• Paramount+
• Prime Video
• Hulu
• Peacock

To achieve profitability and strike a balance for consumers, many of the most popular services now operate under a hybrid model, offering both ad-free and ad-supported plans to viewers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them a win-win for both parties, according to the researcher.

"Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly," Kent said. "This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services."

New studies from Convergence Research Group highlight the ongoing massive shifts to OTT and streaming content with a prediction that U.S. OTT subscription revenue will grow by 17% to $69 billion in 2024 and that 60% of all U.S. homes didn’t have a pay TV subscription at the end of 2023. 

Convergence predicts that these cord-cutter/cord-never homes could rise from 79 million at the end of 2023 to 75% of all U.S. households at the end of 2026. 

The data is from two nearly released studies: “The Battle for the American Couch Potato: OTT and TV” and “The Battle for the American Couch Potato: Bundling, TV, Internet, Telephone, Wireless.”

The subscription revenue projections are based on an analysis of over 90 OTT services (over 50 providers), led by Netflix, Disney/Hulu, Amazon, WBD. The studies are also predicting that double digit growth rates will continue through at least 2026.

However, Convergence is forecasting that net paid US OTT subscriptions added per annum will run on average 40% less 2024-2026 than 2021-2023, even with 2024 being a stronger projected year for net subscription additions than 2023. It is forecasting that total US paid OTT subscriptions, which they estimate reached 497 million YE2023, will continue to grow in the single digits (down from its pre-2023 double digit growth).

The reports also take a deep dives into changes in OTT subscription offerings with a focus on advertising, price, profitability, explored in depth in this Report, have logically followed. Based on the 10 largest OTT providers, Convergence is reported average U.S. price increases were 11% in 2022 and 2023 and that price hikes in 2024 will be similar. That being said OTT offers with advertising represent a significant cost savings (on average 45% less) to similar offers without advertising, the report found. 

The studies also estimate that 2023 saw a decline of 7.76 million U.S. cable, satellite, telco TV subscribers, down 12%, and forecast a decline of 7.1 million TV subs in 2024 down 13%. The researchers are expecting an even more rapid decline of 15% in 2026. 

That has also produced significant 2023 declines in cable, satellite, telco TV access revenue of 10% to $77.6 billion. They are forecasting another 11% decline in 2024 and 13% in 2026.

Convergence also estimates over 3.7 million US residential broadband subscribers were added in 2023, higher than 2022, and revenue grew 6% to $90 billion. But its 2024-2026 sub forecasts are more moderate. While Cable continues to maintain the lions’ share of residential broadband subs, Cable’s annual share of net additions has fallen precipitously due primarily to T-Mobile and Verizon, the reports found. 

The reports can be found here: http://www.convergenceonline.com.

LOS ANGELES—A new study from Inscape takes a deep dive into an important but rarely reported on aspect of cord-cutting and the decline of pay TV subscriptions by focusing on what Inscape calls the “quiet quitters” who have largely stopped viewing pay TV programming but haven’t dropped their pay TV subscription or “cut-the-cord.”

According to Inscape’s recent Q2 2023 TV Market Trends report, about 5% of U.S. cable/satellite households have outright quit viewing content via their satellite and cable TV options in the second quarter of the year. Inscape’s data also demonstrates that a sizable portion of those remaining subscribers have cut their viewing time significantly as well. 

The study found that “quiet quitters,” or households who have sharply reduced their cable/satellite viewing time but have not fully quit, were more prevalent than full quitters in Q2 2023. 

Looking at U.S. cable/satellite households, Inscape found that 9% reduced their cable/satellite viewing by 75% or more from Q2 2022 to Q2 2023 (to account for viewing seasonality), but didn’t fully quit. Additionally, 8.4% of U.S. cable/satellite households had a drop of 50-75% in cable/satellite viewing time in Q2 2023 from Q2 2022.

Inscape data also provides some very important insights into why these “quiet quitting” households retain their subscriptions in the face of such a dramatic pullback in activity. 

Although streaming has become the dominant source of overall TV viewing in the U.S., U.S. households continue to turn to cable/satellite and antenna-based OTA formats for access to sporting and news programming. 

According to Inscape data, while streaming commands 56.5% of overall TV viewing time, that falls to 23.1% for sports and 14.7% for news. Cable/satellite/antenna, meanwhile, accounts for 43.5% of overall TV viewing time, but dominates in sports (76.9%) and news (85.3%).

“This quiet-quitting trend emphasizes the reality that not all TV viewership stats are created equal,” said Ken Norcross, vice president of data licensing and strategy, Inscape. “While overall viewership data suggests a broader movement between formats, closer examination of specific programming categories like sports and news illustrates how legacy formats remain viable options. Collecting accurate viewership data across these disparate formats requires a platform capable of a complete, holistic view of the entire TV landscape, which is what Inscape provides.”

The rate of cord cutting has increased over the past five years according to a new report from Leichtman Research Group, which found that only 64% of TV households nationwide now have some form of pay-TV service. The percentage of TV households that have a live pay-TV service (via cable, satellite, Telco, or internet-delivered vMVPD) is down from 78% in 2018, 86% in 2013, and 87% in 2008.

It’s not just younger viewers that reflect the downturn though. In TV households with viewers 45 years and older, that percentage has fallen to 70%, compared to 88% in 2013. For younger households, adults ages 18-44, only 56% have a pay-TV service compared to 83% a decade ago. 

These findings are based on a survey of 1,769 households from throughout the United States, and are part of a new LRG study, Pay-TV in the U.S. 2023.  This is LRG’s twenty-first annual study on this topic.

Other related findings include:

• 48% of those that moved in the past year do not currently have a pay-TV service – a higher level than in any previous year
• 42% of renters do not have a pay-TV service – compared to 33% of homeowners
• 33% of non-subscribers last had a pay-TV service within the past three years, 37% last had a pay-TV service over three years ago, and 30% never had a pay-TV service
• Among those that never had a pay-TV service, 63% are ages 18-34, compared to 24% of former pay-TV subscribers
• The mean age of traditional pay-TV subscribers is 49.3 – compared to 42.5 among non-subscribers, and 40.8 with vMVPD-only
• Among all pay-TV subscribers, the mean reported spending per month is $112.70 – 5% higher than the mean monthly spending in 2018

“The percent of U.S. TV households with a live pay-TV service waned over the past decade, with a more precipitous decline over the past five years,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “The penetration of pay-TV remains lowest among younger adults and the categories that they tend to populate, including movers and renters.  Today, 56% of ages 18-44 have a pay-TV service, compared to 83% a decade ago.”

LONDON—In just two years, the proportion of internet users claiming to watch little to no linear TV in a typical day grew 22% to almost half (45%) according to a report just published by Ampere Analysis. Based on proprietary consumer research carried out with 54,000 adults aged 18-64 across 28 markets worldwide, the findings show that while younger groups are most disengaged with broadcast TV, 35% of those claiming to watch no linear TV were over 45 years old—a rise from 28% in Q1 2017. 

According to Ampere, despite broadcasters’ traditional audiences moving away, there are opportunities to retain viewers through a mix of live and event content, and via enhancing broadcaster streaming offerings.

The reports showed that the number of high linear TV viewers—those who watch at least four hours of broadcast TV daily—has declined over the last two years, down from 19% of respondents in Q1 2021 to 15% in Q1 2023. In comparison, the number of internet users saying they watch four-plus hours of VoD content in a typical day is up from 58% in Q1 2021 to 62% in Q1 2023.

Despite the declines, Ampere says it is far too early to write off linear TV. The stability of low-level viewing (less than two hours per day) suggests that many internet users still tune in for key live events such as sports, major reality TV shows, and exclusive dramas, according to the researcher, who adds that these content pillars should remain a key part of acquisition and commissioning strategies for linear broadcasters

Additionally, while consumers are turning away from linear broadcast TV, broadcasters’ investment in their own VoD services has ensured they can still engage those audiences who prefer to watch via streaming, Ampere adds, noting that engagement with these broadcast-led video services has increased by 26% since Q1 2023.

“At first glance, the decline in linear TV viewing looks to be a worrying trend for broadcasters as their traditional audience begins to drift away, said Minal Modha, Research Director at Ampere Analysis. “However, as the increased engagement with broadcast-led video services shows, if the linear channels can continue to adapt and provide a strong OTT offering for audiences switching from scheduled TV channels, they have an opportunity to retain them, albeit on a different medium."

As cord cutting rates accelerate across the board for U.S. pay-TV providers, the nation’s largest cable TV company is attempting to stem the flow with the launch of a low-cost video package that combines traditional cable channels with FAST channels and streaming. 

On Tuesday, Comcast unveiled NOW TV, a new streaming offering that for $20 a month, offers 40+ live channels from A+E, AMC, Hallmark and Warner Bros. Discovery, plus 20+ integrated FAST channels from NBC, Sky and Xumo Play, and a subscription to Peacock Premium at no additional cost.

In its launch announcement, Comcast made no bones about its target audience: broadband customers who have been abandoning traditional pay-TV video services in favor of virtual multichannel programming distributors (so-called “vMVPDs”) like YouTube TV, Hulu Live+ and Sling TV.

“NOW TV was built to meet the needs of the value-conscious consumer who wants an entertainment product that is simple and convenient with quality programming movies, top shows, live sports, and news. Launching in the coming weeks, NOW TV will be available to Xfinity Internet customers for an everyday monthly price of $20, no equipment required, and the ability to sign up and cancel anytime,” the company said.

“Built using cross-company innovation and technology from Xfinity, Peacock, Sky and Xumo, NOW TV is the first streaming offering in the market to combine a live TV streaming service, free ad-supported streaming TV (FAST) channels, and a subscription video on demand (SVOD) service,” it added. 

In addition to the mix of traditional cable networks like AMC, A&E, Hallmark and the Weather Channel, NOW will also offer 20+ FAST Channels including NBC News NOW, Sky News and the following genre-based channels from Xumo Play: Action Movies, Black Cinema, Bollywood & Indian Cinema, Comedy Movies, Comedy TV, Crime TV, Documentaries, Drama & Action TV, Family Movies, Food TV, Movies, Game Shows, Her Movies, Horror & Thriller, Kids TV, Reality TV, Sci-Fi & Fantasy Movies, Travel & Lifestyle TV and Westerns.

Although the low-cost service does seem to offer a good value for the programming, the weakest part probably lies in the meagre 20 hours of DVR storage—Hulu Live+ and YouTube TV both offer “unlimited” cloud DVR storage for up to nine months.

Comcast’s move to prop up its video service comes amid record rates of cord cutting—in the most recent quarter the company lost 614,000 net customers, a record for the company. Fortunately it has the heft of owning one of the largest content libraries in the industry and its own Peacock streaming service to add value, whereas smaller pay-TV services, like WOW TV are abandoning traditional cable TV channel lineups altogether and offering YouTube TV to its subscribers.   

NOW TV customers can sign up and cancel anytime through Xfinity.com. At launch, NOW TV Live and Xfinity Stream’s FAST channels will be accessible through the Xfinity Stream app on supported devices, including Xfinity Flex, Fire TV, iOS- and Android-powered devices, and via casting through Apple AirPlay and Google Chromecast.

In its latest quarterly earnings report, Charter Communications said it lost 145,000 cable TV subscribers, more than double the 71,000 who cut the cord in the same quarter a year ago. Broadband subscription growth slowed as well, with the company reporting a gain of 105,000 in combined residential and business subscribers, down from 172,000 in new subscribers a year ago. 

Overall net income was $1.2 billion,  26% lower than the $1.6 billion, reported for the same period a year ago. Revenue was up with $13.7 billion, an increase of 3.5%, while net income was $1.2 billion, a 26% drop from the $1.6 billion logged in the same quarter a year ago. Revenues for its video division fell to $4.3 billion, down 3.5% compared to a year ago while internet subscription revenues were $5.6 billion, an increase of 3.9%. 

A big initiative during the quarter was the launch of Spectrum One, which bundled Charter’s Spectrum Internet, Advanced WiFi and Unlimited Spectrum Mobile services. The company reported a healthy growth of 615,000 new mobile lines, compared to 380,000 added a year ago. Mobile revenue totaled $876 million, an increase of 38.7% year-over-year, driven by mobile line growth, according to Charter.

Programming costs decreased by $95 million, down 3.3% compared to a year ago, a reflection the company says of fewer video customers and existing video subscribers opting for lower cost bundles, the company said.

Despite the disappointing results, CEO Chris Winfrey was optimistic about the next 12 months. 

"We continued to execute well in 2022, growing customer relationships, revenue and EBITDA," he said. "In 2023 and the coming years, we remain focused on three core initiatives — network evolution, footprint expansion and operational execution. Each of these initiatives will deliver benefits for a growing base of customers, our employees and local communities, with long-term value creation for our shareholders."  

Cord-cutting continues to get worse, with the linear video industry suffering its biggest quarterly losses since COVID knocked out live sports and scripted programming, according to new figures from MoffettNathanson.

Traditional pay-TV distributors lost 9% of their subscribers year over year in the first quarter of 2022. The 9% rate of decline compared to 8.9% in the fourth quarter of 2021 and ties the worst level ever, set in Q1 2021.

Virtual MVPDs aren’t picking up lapsed pay-TV subscribers the way they used to either, contributing to a worsening picture for the traditional pay-TV bundle. In the first quarter, the conversion rate fell to 32.8% from 35.6% in the fourth quarter. 

When looking at traditional and virtual pay-TV distributors combined, subscribers were down 5.1% year over year, close to the all-time worst of 5.5% set in the second quarter of 2020, when COVID knocked out new scripted shows and most live sports.

In all, the linear video industry lost 2.1 million subscribers in the first quarter, the worst since Q1 2020.

Looking at company reports, MoffetNathanson said the biggest losers of subscribers in the first quarter were Comcast, down 511,00 and DirecTV down 496,000. DirecTV, spun off from AT&T last year, reported its latest subscriber numbers to bondholders and debt analysts.

Including estimates for some outfits that don’t publicly report numbers, MoffettNathanson said the Q1 performance left the linear TV business with 81.048 million subscribers.

Cable had 41.661 million subscribers, down 6.9%, satellite had 18.5 million subscribers, down 12%  and the telcos had 5.829 million subscribers, down 13.5%. 

Total traditional subscribers were 66.118 million, down 9% and the virtual MVPDs had 14.930 million subscribers, up 16.7%.

Separately YouTube TV reported on Tuesday that it now has more than 5 million subscribers.

“The rate of decline of the linear business is not something that ‘just happens.’ Many of the media companies have made conscious decisions to strip-mine their cable networks, shifting their best content to their streaming platforms,” note the research firm’s principals, Craig Moffett and Michael Nathanson.

“At the same time, they have raised prices relentlessly to offset declining viewership. Both strategies have alienated distributors, who are now more ambivalent than ever about trying to retain video subscribers who are themselves increasingly ambivalent about lower and lower quality video services for which they are asked to pay higher and higher prices,” Moffett and Nathanson said..

Several sports leagues have started to put games on streaming platforms, a trend that may accelerate, further hurting the linear TV business, which was expected to be supported by live programming including news as well as sports.

“Including vMVPDs, the rate of decline for linear video is hovering near its all-time worst levels. And the rate of decline for traditional distributors is the worst it has ever been. That’s not what one would expect if we were gliding towards a stable sports-and-news floor.”  

This article originally appeared on B+C.

JOHNSTON, IOWA— There is a bit of a renaissance taking place in the broadcast television industry—the return of the television antenna. Television antennas became relegated to use only by the TV in bedroom for watching the nightly news or to the TV on the kitchen counter providing background content while preparing a meal. 

However, with the rising costs of traditional cable and satellite services, the increased availability of over-the-top streaming services and the expanded channel selections over traditional broadcast have exposed digital generations to the technology and reminded the pre-digital generations of how they used to be entertained in their homes. A recent study from Horowitz Research shows that antenna penetration nationwide grew 38% year-over-year between 2020 and 2021 and now reaches 40% of all TV content viewers 18+.

As this rediscovery is taking place, the underlying technology of traditional over-the-air broadcast television is undergoing a metamorphosis that will enable improved traditional television and a whole lot more. Higher-quality pictures and immersive audio are just the tip of the iceberg of improvements. 

NextGen TV, as it has been dubbed by the Consumer Technology Association will enable interactivity with the content, user-specific personalization and recommendations, higher resolution, a vast improvement in accessibility and alerting features, and a raft of other capabilities beyond what television can and has traditionally done or even considered.

The Path Forward
While it may seem irrelevant to talk about the original NTSC standard and analog broadcasting, it is important to understand how the past has influenced the present ATSC 1.0 DTV broadcasting service and continues to influence the rollout of ATSC 3.0. One of the obvious influences is a TV’s station’s over-the-air coverage. While television can trace it roots back to the early 1900’s, it was after World War II that the explosive growth started. which required the establishment of the interference limited coverage contours that we are all familiar with. While over-the-air service protection changed to noise-limited contours, the assumption was that the receiver was stationary and attached to an antenna that was mounted outside of the home and 30 feet above the ground.

The introduction of digital television (DTV) 25 years ago was a game changer when it came to the quality and quantity of live streaming content that is still the mainstay of over-the-air broadcasting. It also expanded ancillary services which we often refer to as “datacasting,” which, in essence, started with the introduction of closed captioning as a digital service carried on line 21. There have been numerous experiments and deployments of other ancillary digital services encoded into the analog services with limited success. 

ATSC 3.0 was the next logical step in the development of television and pretty much follows the path of all things digital. As the underlying physical technology improves, software developers create code to take advantage of the improvements which then pushes the physical technology, and the cycle continues.

Global Goal
Unlike what was done in the past, the goal this time was to create a standard that could be adopted worldwide. A global community of technical experts is involved in creating the use cases and suite of standards that is ATSC 3.0 as well as in its testing, refinement and deployment. 

Currently, in the U.S., more than 60 markets have deployed NextGen TV with station groups working together to launch ATSC 3.0 while maintaining ATSC 1.0. South Korea deployed ATSC 3.0 a few years ago and there are also other countries that are looking at their next upgrade in terrestrial DTV and considering adopting all or portions of ATSC 3.0. This could be good news as it could prompt a deeper consideration of adding ATSC 3.0 receivers in handheld devices.

Probably the most frequent question I hear when discussing the move to NextGen TV is: Why do it at all? The transition to DTV  was easier because it was federally mandated, but the FCC’s approach to ATSC 3.0 is to put the decisions and timeline mostly in the hands of station owners, with some guidance from the commission on protecting traditional digital broadcasts.

To answer the “why” question requires that we examine how the advances offered by ATSC 3.0 resonate with decisionmakers as well as the general public. It also requires that we understand not only the content creation side of the equation but content reception as well. Take immersive technology for example—creating this type of content will not only require additional skills and resources from the creators, it will also require the consumer to have the technology to receive it. 

Consumer Adoption
I often get the chance to talk about NextGen TV with industry groups as well as the general  public and I usually start off with a few questions to the audience to get an understanding of their technical expertise and field of interest. 

The first thing I like to talk about is the improved reception thanks to the changes to the physical layer modulation scheme and the addition of elliptical or circular polarization to the transmitted signal. 

Just as important, there’s also the advantage of being able to configure independent physical layer pipes to improve specific stream reception in the face of more challenging conditions. Using an indoor antenna is not only a fact of life but also the dominant methodology for viewers who expect reliable service regardless of location. 

Explaining the benefits of ATSC 3.0 over ATSC 1.0 to consumers is significantly more challenging. Where the DTV explanation got complex was the difference between SD and HD. Talking pixel count and resolution is fairly easy and the audience is sort of conditioned to understand that the bigger number is always better.

The problem with ATSC 3.0 is that the benefits of UHD over HD are much more subtle. This is especially true given that most broadcasters don’t see the benefit of using a significant amount of their channel capacity to carry content at a resolution that will not be perceived by a significant majority of viewers.

The areas that I like to focus on regarding content enhancement are things like color gamut, dynamic range and immersive audio. I bypass the 1080p vs. 1080i debate and instead, show an SDR and HDR high definition picture side by side that clearly illustrates the value proposition.

When it comes to audio, the early enhancements used to be a lot harder to explain, but inexpensive sound bar systems have made 5.1 immersive audio a fairly simple and affordable audio enhancement.

I am also careful when bringing up the potential for personalization and interactivity, primarily because most of the development happening in that space is geared towards enhancing advertisers’ ability to better target their audiences. However, I’m not sure that telling viewers that they’ll see more meaningful commercials adds a lot to the value proposition.

Public Service
Perhaps ATSC 3.0’s strongest tool in the toolbox is its ability to provide a much more robust and meaningful emergency alerting services—a  topic that resonates well with everyone. The idea of waking up a receiver to provide alerts during an emergency is a very compelling. 

I live in an area of tornadic activity and high-wind events that happen on very short notice. Weather radios are pretty common and while they wake you up and provide an audio alert, most of us will turn on the TV to see what is happening. ATSC 3.0 can wake people up and provide video and audio and offers a faster and more complete, yet simpler method of gathering the necessary emergency information from different sources. 

My colleagues at PBS North Carolina have even worked with emergency services within their state to use ATSC 3.0 as a closed alert system for first responders providing basic data in a few seconds that currently takes minutes using their current technology. The envisioned system can also supply a wealth of additional information such as maps, floor plans and situational data so that the first responders arrive better informed.

Closed-circuit services are not necessarily limited to first responders. The pandemic lockdown in many cases crippled educational institutions and many students lost an entire year or more of learning. A number of ATSC 3.0 pilot projects were demonstrated providing secure, curated content to deliver remote learning to homes that don’t have access to traditional broadband. The lack of connectivity may be due to rurality or economics, but regardless of the root cause, these pilot projects represent vital public services.

Fleet Updates
These types of ancillary services are just the tip of the iceberg—one to many broadcast distribution of data services have applications well beyond the traditional broadcast space.

With the annual ATSC Meeting being held in Detroit for the first time this month, we are seeing real interest from automakers—in particular, car rental companies—who are considering using ATSC 3.0 to provide software updates to their fleet. These companies have stated that the number one reason many of their cars are out of service is due to the lack of software updates, so being able to use ATSC 3.0 to update their fleet of vehicles while they are parked rather than in the service shop is a compelling case.

So what is the future of NextGen TV? Well, I have a fundamental question that I have asked myself and as well as others working in television. The question, “do you think ATSC 3.0 is essential to your station’s future survivability and growth?” I’ll be blunt, I have heard “yes,” “no,” and “not sure.” 

My personal opinion is yes it is. I think that what we call DTV was actually a half step. ATSC 3.0 moves us to being a true digital broadband service. It will provide opportunities to grow in ways that we have only started to think about. Without it I think we operate our existing systems until we become irrelevant and fade away and without action on our part, I don’t believe that fate is too far into the future.

LONDON—A new forecast from Digital TV Research is predicting that pay TV sub losses will be lower in the next five years than they have been in recent years. But that pay TV penetration will still drop below 50% in 2026 and that pay TV subs will fall to about 60 million in 2027. 

That marks a huge decline from 2010, when pay TV penetration stood at 91% and there were 105 million pay TV subs, and a significant decline from 2021, when pay TV penetration was about 60%. 

It also highlights a huge financial loss for operators. The report noted that pay TV revenues peaked in 2014, at $101 billion. A $48 billion decline is forecast between 2014 and 2027; halving the total to $53 billion.

The author of the report, Simon Murray, principal analyst at Digital TV Research, explained that  “The U.S. lost 6 million pay TV subscribers each year from 2019 to 2021. Losses will decrease from now on, but the 2027 total will be 12 million lower than 2021.”

The number of households without a pay TV subscription will rocket from 11.34 million in 2010 to 72.86 million in 2027 due mainly to cord-cutting.

For more information on the “North America Pay TV Forecasts” report, contact: Simon Murray, at simon@digitaltvresearch.com.

DENVER, Colo.—The digital marketing agency Adtaxi has released a new survey showing an accelerated shift towards streaming. It found that nearly half (49%) of consumers planned to stream the Superbowl and that two thirds (64%) of consumers choose streaming as their preferred method of content consumption. 

The Adtaxi annual “Consumer Streaming Trends and Super Bowl Viewership” survey also reported that one third (33%) of Americans plan to cancel their cable subscription in 2022. 

“It is no surprise that consumers are favoring the convenience of streaming services,” said Chris Loretto, executive vice president of Adtaxi. “The results of the survey underscore the importance of capitalizing on digital audiences and is a continuation of years-long consumer trends towards convenience, cost-efficiency, and personalization in media consumption.”

The survey shows that the percent of Americans still paying for cable services has fallen below 40%, down from over 50% just 3 years ago and that only 36% of cable subscribers are turning to cable first when they turn on the TV. 

The intention to cut the cord also seems to be accelerating, with 33% of Americans saying they plan to cancel their cable subscription in 2022, up from 31% in 2021 and 28% in 2020.  For those wanting to move away from cable, 22% claim they like the option of “binge watching” shows and 27% want to watch on their own schedule. 

“We can anticipate continued declines due to viewing preferences and cost, the multitude of streaming-capable devices over TV sets in the home, and increased competition directly from streaming services. Comcast alone lost 1.5 million TV subscribers in 2021,’ said Adtaxi director of research, Murry Woronoff. ”It is clear that cord-cutting will continue moving forward and we can expect it to continue at its current brisk pace in 2022.” 

In contrast the survey found high levels of engagement with streaming, with 92% of respondents stream some form of TV/Video content. The majority do so through either Connected TV (64%), followed by Smartphone/Mobile (54%) and/or Laptops (38%). 

In addition, nearly two-thirds (64%) of consumers make streaming their default setting – the first thing they check for content. One-third of TV streamers obtain 100% of their TV/Video content from such services and 77% of TV streamers get the majority (over 50%) of their content via streaming services.  

When it comes to viewing advertisements on streaming services, 33% of Americans believe the ads are more applicable to their personality and preferences. That beats cable (13%) and broadcast TV (10%) combined. 

When asked what streaming services consumers had used in the past 30 days, 71% had used Netflix, 63% used Amazon Prime, 53% used YouTube TV, 44% had used Hulu and Disney+, and 32% had used HBO Max. Out of all the services listed (30), the majority of respondents (38%) said Netflix was the outlet they use most often followed by YouTube (14%). 

This shift towards streaming was also highlighted in the survey’s findings regarding Super Bowl viewership. A slight majority of viewers (51%) plan to watch the Super Bowl on broadcast or cable TV, but digital will account for 49% of the total Super Bowl audience due largely to TV Streaming. 

The survey also found that the big game is a cross platform event, with 46% of Americans saying they will interact with various forms of digital media while watching the game. 31% state they will be using social media, 15% will be on a sporting website, and 8% will be using online forums. 

Similar to 2021, the majority of Americans will be skipping larger social gatherings. 43% of Americans plan to watch the Super Bowl either alone or with family at home, while 11% plan to throw a watch party, and an additional 11% plan to attend one. The survey also found that only 3% of consumers plan to watch the game from a bar or restaurant. In total, only 25% of Americans plan to watch the Super Bowl outside of their homes.

“With all eyes on Super Bowl LVI, these survey results offer insight into how marketers should maximize their reach. With nearly half of Americans (46%) utilizing digital media while watching the big game, it will be important for marketers to prioritize multiple platforms,” added Loretto. “The key to resonating on these social and streaming platforms will be a voice and strategy that is highly adaptable to changing circumstances and evolving preferences.”

This survey was conducted online using Survey Monkey among a national sample of 1,127 adults spanning across U.S. geographic regions, income levels, gender and age, with Super Bowl viewers represented by the 772 respondents who indicated they plan to consume the Super Bowl. The survey was conducted on January 14th, 2021.

ELLISVILLE, Mo.—The pandemic drove new levels of consumer dependence on television to stay entertained, informed and connected, but the rising cost of maintaining TV subscriptions is prompting many consumers to consider dropping at least some of those services, a new report from Mohu suggests. 

The survey from Mohu, a digital TV antenna provider owned by Antennas Direct, found that most Americans subscribe to more TV services today as compared to last year (59%) and that 2 in 5 (44%) currently have four or more subscriptions.

But the Mohu’s "TV Viewership Index,” which surveyed 1,200 U.S. adults ages 18 and older that currently subscribe to at least one TV service, also found that more than 2 in 5 (44%) plan to cancel at least one subscription within the next six months. 

As Americans subscribe to more services, the research also found that consumers cite cost as the primary driver (80%) for their plans to drop services. 

The research also found that financial challenges have pushed many to get creative with managing their TV costs by leveraging free trials (55%), sharing subscription logins (48%), tightening budgets for personal spending and activities (48%), and even cutting the cord altogether (54%).

"Access to TV is no longer just nice to have, it's an urgent necessity for every American to stay updated on critical news and information,” said Richard Schneider, CEO and founder of Antennas Direct and Mohu. “The problem is that watching this programming is becoming extremely difficult and expensive – but it doesn't have to be. While many Americans grapple with rising streaming and cable costs, a sizable group depend on TV antennas to seamlessly and affordably access the TV content they need to stay connected to the world around them.”

Other findings from the report include:

• Americans are willing to invest in more TV content options: Three-quarters (74%) of Americans currently subscribe to different TV services to expand available content, and nearly 4 in 5 (78%) have subscribed to a new service just to watch one particular piece of content. Content is so important that 80% say limited viewing options have pushed them to cancel a TV subscription.
• Investments also go toward optimizing the home viewing experience: Watching TV at home has become so important that Americans have invested in new devices (75%), such as a new television (86%) or streaming box (81%) to optimize the experience. Another 64% have purchased new furniture or home décor to enhance viewing at home.
• The cable vs. streaming war continues: To avoid choosing between streaming or cable, many households are diversifying content by subscribing to both (63%). In fact, cable is the go-to source for local (54%) and national (46%) news programs, while streaming is the most popular way to access movies (57%) and TV show favorites (50%). Meanwhile, approximately 1 in 10 Americans use TV antennas as the primary way to access all the different types of content.

To download the TV Viewership Index, click here. 

NEW YORK—A new survey from Horowitz Research is reporting that only 61% of Black households, a group that has long been one of the most loyal cable and satellite customers, had a pay TV subscription in 2021. 

That marks a precipitous decline from the 88% levels in 2017 and highlights the importance of MVPDs offering a line-up of culturally relevant content if video providers hope to retain those customers.  

Adriana Waterston, Horowitz’s chief revenue officer and insights & strategy lead, explained that “Horowitz has long asserted that Black consumers are some of the best customers for entertainment content and services; these are audiences who should not be taken for granted. Many companies are late to the game, only now focusing on the Black audience in the context of BLM and new diversity mandates. To not be viewed as simply pandering, companies who hope to serve the Black audience must make meaningful and sustained investments, not just in programming and marketing, but in community outreach and support, in order to earn this valuable audience’s trust.”

Though Black households were shedding cable at a slower rate as compared to the overall market, the Horowitz data shows that among Black consumers who are cord-cutters, half have cut the cord within the past 3 years. 

The study also found that Black homes are becoming less likely to include a pay TV subscription in the content they use and are willing to pay for.  

In 2018, 69% of Black households were “content omnivores,” a term Horowitz coined in 2017 to describe those households who are the hungriest for content and are willing to pay for traditional MVPD services as well using a variety of streaming services in order to access all the content they want. 

In this year’s study, only one in three (33%) Black households are content omnivores; almost 4 in 10 relied on combinations of streaming services, digital antennas, and/or vMVPD services to access their TV content. 

Another segment of about one in four rely only on traditional MVPD services and do not stream at all.

Not surprisingly, income and age play an important role in platform choices, Horowitz reported. Black households with lower incomes are less likely to subscribe to traditional MVPDs, and 80% of Black cord-cutters believe that they are saving at least a decent amount after having done so. 

Older Black TV content viewers are more likely to subscribe to MVPD services (65% among those 50+) and to use antennas (28% among those 50+) than younger Black TV content viewers (57% and 12% each, respectively).

Despite shedding the MVPD cord, there is still interest in many of the features of the multichannel experience, the report said. 

For example, 64% of Black TV content viewers say that they enjoy flipping through channels, and the study finds that Black TV content viewers still highly value live television, local broadcast news, national news, and sports content—the mainstays of traditional providers.

Culturally relevant content is also in high demand among Black audiences, with 60% of Black consumers watching content geared to Black audiences at least weekly. 

That suggests that providers that can deliver the best variety of ultra-current local, national, and international content that reflects contemporary Black perspectives and culture, combined with robust on-demand offerings, will be the best positioned to attract this valuable audience, the researchers noted. 

The data is from the new “State of Viewing & Streaming: FOCUS Black” report. 

SAN JOSE, Calif.—Roku’s annual survey of TV viewing habits finds that the pandemic accelerated the shift to streaming is continuing with more than half of viewers reporting they are still viewing more content this summer, thanks to the growing amount of programming on streaming platforms, ease of use and cost savings. 

The survey found that  one in four consumers cut the cord in the last year and they pay $49 a month for video services versus $121 a month for pay TV services. Notably it also found that 23% of boomers cut the cord in the last year, indicating that the trend has spread from younger to older groups.

More than half of all boomers (51%) added more streaming services in the last year and 46% of boomers now have three to five streaming subscriptions, about the same rate as younger generations. 

However, younger groups are still more avid streamers, with 98% of Gen Z  streaming versus 71% of boomers. 

“Amid a year of uncertainty, this survey puts data behind what we at Roku have believed since our founding in 2002: all TV will be streamed,” said Anthony Wood, Roku founder and CEO. “These results show that TV streaming has passed a tipping point. Even more exciting, it’s bringing more people together, starting new conversations, and giving viewers of every generation more of the content they love, while also making it more accessible. TV streaming is here to stay.”

The survey found that 42% of those surveyed watched live sports on streaming versus 62% on pay TV, a record high for the annual survey. 

While nearly two in three consumers plan to go to a movie theater in the next year, nearly three in five have streamed a new movie release at home in the last year. 

Ad-supported streaming services were also widely embraced, with seven in ten saying they have ad-supported services. 

AVOD users were more likely to be cord cutters and they spend more time watching TV. 

The National Research Group conducted the survey on behalf of Roku, producing data that expanded on previous years’ annual “cord-cutting” studies.

Between July 24 and July 30, 2021, on behalf of Roku, Inc. NRG surveyed online 2,852 18-70 year-olds in the U.S. who watch at least 5 hours of TV per week via traditional pay TV (i.e. cable, satellite, or telco service) or a streaming service.

LONDON—Cord cutting will continue to hit the pockets of the pay-TV industry over the new few years, as new projections from GlobalData indicated that pay-TV revenue is expected to drop from $94.4 billion in 2019 to $84 billion by 2024.

This comes from a new report published by GlobalData that looks at U.S. telecom and pay-TV service revenue. However, despite the $10 billion loss of pay-TV revenue, GlobalData still projects that there will be overall growth, with total service revenue reaching $419.4 billion by 2024.

As projections stand now for the telecommunications and pay-TV industry, revenue in 2019 will reach $404.5 billion, which would represent a 0.5% decline from 2018’s results. This loss is mainly attributed to declining revenues from mobile and fixed-voice data communications. However, the compound annual growth rate of the total service revenue is expected to be 0.7%, which would get the industry to the $419 billion mark.

Mobile data is expected to be the chief driver for this growth for telecom service revenue, going from $131.2 billion in 2019 to $194.6 billion in 2024 as smartphone subscriptions increase, there’s more demand for mobile services and adoption of 5G services.

Fixed broadband is also expected to see a CAGR of 4% in the next five years thanks to the adoption of ultrafast broadband service connections.

GlobalData has more information on the report on its website.

HOBOKEN, N.J.—While cutting the cord is often done as an effort to save money off traditional pay-TV services, it also typically leads to a surge to broadband usage, which in turn can open doors for other revenue opportunities for service providers.

This comes from a report by analytics company OpenVault on the third quarter of 2019 for the broadband industry. It’s primary finding was that cord cutters’ average broadband usage has reached 520.8 GB a month, an increase of 7% in Q3. That is almost double compared to the monthly weighted (usage-based billing and flat-rate billing) average subscriber's usage at 275.1 GB.

Among cord cutters, 12% qualify as “power users,” meaning people who consume more than 1 TB or more of data per month. That is nearly triple the weighted average subscribers in Q3 2019, who come in at 4.2%. In the last year, the total number of power users have increased by 62% year over year. OpenVault points to FRB subscribers as the drivers of that, noting that they sign up for 1 TB plans 30% more than UBB subscribers, and 64% more for 2 TB plans.

Even though lessening a bill is often cited as a reason for cutting the cord, OpenVault found that two-thirds of cord cutters maintained the same broadband packages, while 29% upgraded; 4% downgraded.

“A cord cutting event usually signals a need for faster broadband speeds,” the report reads. “Cord cutters are opting for high-bandwidth OTT services, and are using multiple devices in the home to consume video, often simultaneously. This behavior lends itself to higher speed, higher margin broadband packages to ensure an acceptable broadband CX and the cord cutting event is the best time for operators to educate customers an upsell them accordingly.”

Despite not reaching the usage numbers of cord cutters, monthly weighted average usage increased as well in Q3 by 25% (118.2 GB to 147.4 GB), signaling that consumption is increasing across the entire market.

OpenVault’s full report is available for download.

LOS GATOS, Calif.—Traditional TV viewing could take a backseat to streaming as soon as five years from now, according to a new report from Roku. In a 2019 cord cutting study released on Wednesday, projections estimate that 60 million TV households will access video on their TVs through streaming by 2024, eclipsing traditional pay-TV viewing for the first time.

Specific findings from this most recent study indicates, according to Roku, the emergence of a new generation of cord cutters. Overall U.S. market data has seen a reported two million Americans already cut the cord in 2019, following 3.5 million who did so in 2018. The number of total streamers don’t just include cord cutters or cord nevers—those who have never subscribed for pay-TV services—but also cord shavers, consumers who may still have traditional pay-TV services but have reduced their package over the last few years.

“Analysis indicates shifts in attitudes, behaviors and, most importantly, viewership among the new generation of cord cutters,” the Roku study reads. “Essentially, their viewing behavior more closely mirrors that of average mainstream TV viewers, but this new generation of cord cutters took the initiative to seek out better value and choice in how they consume TV.”

Roku noted five key factors that are driving people toward streaming and away from traditional pay-TV services. First, the option of vMVPDs allow consumers to access local channels and sports often at a reduced price of traditional TV. There’s also high-quality content available on streaming services; ad-supported video on-demand options, which was watched by 73% of the study’s respondents; ease of use, with 89% saying using a streaming device is easy and 74% calling it more convenient than pay-TV; and the claim that cable and satellite companies aren’t devoting the effort to retain low-margin video subscribers.

The report shares that respondents seem to be glad they switched to streaming, with 82% or cord cutters saying they are “extremely satisfied,” including 92% of Roku customers. In fact, the study found 98% of Roku cord cutters saying they will never go back to traditional TV, while 2/3 wish they had cut the cord sooner.

Find the full report here.

DURHAM, N.H.—Traditional pay-TV services took another hit in 2018, according to a new report by the Leichtman Research Group. Those traditional avenues for TV—satellite, cable and telephone companies—lost about 3,515,000 subscribers in 2018, compared to 3,110,000 in 2017.

Satellite TV services took the biggest individual hit, with a reported 2,360,000 subscribers leaving last year. That was up from 1,550,000 in 2017. DirecTV lost more than twice as many subscribers in 2018 (1,236,000) than in 2017 (554,000). DBS services cumulatively lost 7.5 percent video subscribers.

The top six cable companies saw less of a difference, but still had a larger exodus of subscribers than in 2017. This year 910,000 video subscribers left the six companies, about 1.9 percent of all its video subscribers; the number was 680,000 last year.

Telephone companies with pay-TV services—AT&T U-verse and the like—actually had less subscribers exit deals year-to-year, with 245,000 cutting the cord this year versus 885,000 the previous year. In total, after losing 8.7 percent of its subscribers in 2017, Telcos saw a decrease of 2.6 percent in 2018.

The top companies covering all three of these traditional services lost 2,875,000 net video subscribers in 2018.

Despite another year of overall growth, 2018 was also a slower year for internet-delivered services, including the top reporting services Sling TV and DirecTV Now. Those two services added 640,000 subscribers in 2018, but those numbers totaled 1,600,000 in 2017.

“The pay-TV market saw net losses increase in 2018,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group. “Overall, the top pay-TV providers lost 3.1 percent of subscribers in 2018 compared to a loss of 1.6 percent in 2017. Since the industry’s peak in 1Q 2012, pay-TV subscribers for the top providers have declined about 6,000,000. This reflects a decline of about 10,000,000 subscribers for traditional services, offset by the addition of about 4,000,000 subscribers for the publicly reporting vMVPD services.”

The number of households receiving their television via over the air antenna now represents 14 percent of all U.S. television households, nearly double what it was eight years ago, according to a new report from Nielsen.

With the television industry being upended by the emergence of multiple streaming options, the result has been declining pay-TV subscriptions and the increasing use of alternate methods of distribution, including the old-fashioned TV antenna.

“As of May 2018, more than 14% of all TV households—or 16 million homes—have OTA status, and that number is on the rise,” said Justin Laporte, vice president of Local Insights for Nielsen, in its latest “Local Watch Report.” “As consumers look for more on-demand and cost-effective options, there has been a resurgence in this type of television household.”

In its report, which analyzes the evolving habits of viewers, Nielsen divided these OTA households into two categories: “Plus SVOD,” those households that supplement their viewing options with streaming services such as Hulu (not Hulu Live), Amazon Prime and Netflix; and “No SVOD,” households that get their television strictly via antenna.

There are distinct differences in the demographics and behavior of the two types of households, according to Nielsen.

“The ‘No SVOD” homes tend to be older, more diverse and have a smaller median income, compared to the “Plus SVOD” segment, which skews younger, more affluent and more device-connected,” Laporte said said. “We see different media behavior with Plus SVOD homes consuming less traditional media and spending more time on personal devices. In an average day, the No SVOD homes have more viewing to broadcast stations, at almost five hours, than all of the TV usage combined in Plus SVOD homes.”

A third, but smaller and growing category—part of the “Plus SVOD” group—consists of households that get their programming via streaming services such as DirecTV Now, Youtube TV, Sling TV and others. These “virtual multichannel video programming distributors,” (vMVPD) make up 1.3 million of the Plus SVOD households, according to Nielsen.

“Sharing a similar profile to the Plus SVOD group as a whole, these consumers have a higher median income and access to more devices,” Laporte said. “They also have access to individual cable networks and spend an almost equal amount of time watching broadcast and cable sources.”

Here is the breakdown:

No SVOD: This group represents 6 percent of total U.S. homes, comprising 6.6 million homes in the U.S. This demographic skews older, with over half households of median income of less than 30K. They are also less likely to own mobile devices such as smartphones, streaming devices or tablets.

Plus SVOD: There are 9.4 million homes, representing 8 percent of total U.S. homes that make up this segment. The median viewer age is 36 and the households have a higher average income and more “well connected” with more access to mobile and streaming devices.

Geographically, Milwaukee has the largest percentage of “No SVOD” households: (11.1%) and Plus SVOD households (no vMVPD): (16%), while Dayton, Ohio has the largest percentage of “Plus SVOD (with vMVPD) households, representing 2.7% of all U.S. households.

Regardless of what Nielsen labels them, they are all considered “cord cutters” or “cord nevers” by the industry. 

Not too long ago, streaming was an emerging technology. Today, it’s the norm. In fact, cord-cutting isn’t just growing, it’s accelerating, according to the latest eMarketer data. But that means that the larger transformation toward connected TV (CTV) is no longer being driven by technology companies, nor is it being driven by media companies, many of which are scrambling to build their own direct-to-consumer platforms. At this moment, and throughout 2019, consumers will be in the driver’s seat. Here’s what that means for CTV.

The CTV revolution will be ad-supported

A funny thing happens when you cut the cord. At first, you can buy anything, but as most consumers discover, what they’re really doing is rebuilding their old bundles, with some modifications, of course. The reason is simple: everyone wants to experience as much of the second golden age of television as they can. But unlike the first golden age, household budgets mean consumers have to make choices as they rebuild their bundles.

With the exception of Netflix, you can bet that just about every streaming service out there, including the ones that will launch sometime in 2019, will subsidize subscribership with advertising. In fact, Hulu already offers advertising subsidies, and the company’s success with its $5 student bundle (which includes Spotify!) will certainly mean that the next generation of subscribers will be looking for a subsidized deal. Likewise, it would be very strange for Amazon not to turn to ads at some point, given the $2.2 billion dent the company made in the advertising business in 2018.

Bottom line: the skinny bundle that helped companies like Sling TV grow, isn’t economically viable—not without advertising subsidies. Eventually, as competition among streamers gives way to consolidation, we’ll see a reality check on the cost of an ecosystem teaming with premium content choices. Or put another way, as consumers continue to demand nearly unlimited choice at low prices, the only thing that will keep CTV viable is advertising.

But advertising won’t look like advertising as we know it

Direct-to-consumer brands are eating away at the biggest traditional advertisers, thanks to first party data. In fact, as first-party data capabilities grow, there’s even a new mantra in marketing to fire the CMO and replace them with a chief growth officer. After all, if you have enough first party data, you’re really only trying to solve two challenges: sales and attribution. Those challenges are tailor-made for CTV.

Direct-to-consumer brands are already experimenting with CTV, but as traditional advertisers fight back, their efforts won’t look the carpet-bombing ad blitzes of the legacy model. Instead, they’ll either buy as much third-party data as they can, or they’ll simply buy the direct-to-consumer upstarts, just as Unilever did when it acquired Dollar Shave Club. Or, if they can’t do it through acquisition, they’ll do it through imitation, just as P&G’s Gillette brand did with its on-demand razor service. But regardless of strategy, the writing is now on the wall for television. In 2019, direct-to-consumer advertising will begin to become the norm on CTV.

But will I still see the same ad over and over again?

It’s absolutely true that any consumer who has ever watched more than an hour of streaming TV has run into the annoyance of being hit over the head with the same—often totally irrelevant—ad at every single commercial break.

Initially, advertisers bought CTV as an add-on to their traditional buys. As a result, they weren’t worried about unduplicated reach because the streaming audiences were small, and the advertisers were still running the legacy playbook of carpet-bombing their audiences in the hopes that they’d hit their target. But as advertisers shift to a data-driven approach—whether they’re direct-to-consumer brands using first party data, or traditional brands using third-party data—solving the unduplicated reach problem becomes imperative. After all, the name of the game is to narrowcast your message, not broadcast it.

From both a sales and technology standpoint, the pieces are now in place to solve the unduplicated reach problem in 2019. That’s good news for advertisers and broadcasters, but it’s even better news for consumers. Because what’s at the heart of the CTV revolution isn’t a better way to deliver ads. The heart of the CTV revolution is a better consumer experience, and that’ll be the big story of 2019.