Report: Cord Cutting Accelerating

Dec. 10, 2015
According to eMarketer, a growing percentage of American households are cutting the cable TV cord each year. In 2015, 4.9 million ...
According to eMarketer, a growing percentage of American households are cutting the cable TV cord each year. In 2015, 4.9 million U.S. households are expected to unsubscribe from traditional pay TV services, a jump of 10.9% over last year. And that growth is expected to accelerate in the coming years, with the number of incremental cord-cutting households jumping another 12.5% in 2016. In fact, by the end of next year, the number of U.S. households subscribing to cable and satellite are expected to drop below 100 million.

"This year, the number of digital video services expanded at a faster pace than ever before," wrote eMarketer Senior Analyst Paul Verna. "In addition to standalone offerings from the likes of HBO, there are new digital bundles that include many of the channels consumers could only have received with cable and satellite subscriptions in the past. This widespread availability of digital content makes cord-cutting a viable option for a growing segment of the viewing population."

Cable and satellite providers are expected to steadily lose customers through 2019. The number of U.S. households subscribing to cable TV is expected to drop 0.4% this year, while the number of U.S. households subscribing to satellite TV is expected to drop 1.5%. Conversely, more American households are expected to subscribe to TV packages provided by telecom providers such as Verizon (NYSE:VZ) and AT&T (NYSE:T). That segment is expected to jump 1.8% this year.

"Telecom companies have done better than cable or satellite providers in selling bundles that include high-speed Internet connectivity, phone service and TV," wrote Verna. "These all-in-one packages often save customers money and facilitate viewing on mobile devices."

Also noteworthy, the share of viewers who have never subscribed to cable or satellite ("cord-nevers") is growing as well. This year, the percentage of U.S. adults who have never subscribed to cable or satellite TV is expected to reach 12.9%. That share is expected to grow to 13.8% by 2016.

About the Author

BTR Staff

EDITORIAL
STEPHEN HARDY
Editorial Director and Associate Publisher
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MATT VINCENT
Senior Editor
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SALES
KRISTINE COLLINS
Business Solutions Manager
(312) 350-0452
[email protected]
JEAN LAUTER
Business Solutions Manager
(516) 695-3899
[email protected]

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