More than 15% of Americans are “cord cutters” — they previously paid for a cable or satellite TV subscription, but no longer do. An additional 10% are “cord nevers”, mostly young adults who grew up with the internet and never subscribed to cable or satellite TV. By 2025, Forrester research predicts that 50% of all viewers under 32 will not pay for TV.
Cord cutting is increasingly driven by the ability to access content online, with 47% of “cord cutters” subscribing to streaming video on demand service (SVOD) such as Netflix, Hulu, go HBO Go. Overall, 4 in 10 households have an internet connected TV they US to watch TV and movies, up from 15% five years ago. Users can access content on their TV through digital media players such as Apple TV, Chromecast, or Roku; video game consoles such as XBox and Playstation; streaming-enabled Blu-ray players; or by using Smart TVs that offer direct access to popular SVOD services. Much of this is OTT TV.
Content consumed by “cord cutters” is not limited to online exclusives such as Narcos or Mr. Robot. A few weeks ago, millions of Americans live-streamed the first 2016 presidential debate on YouTube, Facebook, Twitter, Bloomberg TV, and CBSN. Compared with the online broadcast of the 2012 Obama – Romney debates, YouTube’s 2-million concurrent live viewers represent 14 times the live-viewing audience, five times higher watch time, and four times more peak concurrent viewers. After the debate, parts of the broadcast were accessed online by tens of millions of additional viewers.
Cord cutters is no longer a segment, it’s a trend. TVE is the new way of watching TV. Younger millennials are 23% less likely to explore TV alternatives or to switch providers if they know their video provider offers TVE.