Cutting to the Chase: Disconnecting from Speculation and Plugging into the Facts about Cord Cutting
The Great Disconnect
For years, the media has written about the impending demise of the TV industry due to cord-cutting households canceling their wired cable, satellite or telco subscriptions in favor of streaming. There is no denying that in the past five years the number of broadband only and broadcast only homes has grown, with double-digit increases in this past year. However, even with this level of growth these homes still represent the minority of TV homes — less than 17 percent. The great disconnect occurs when statistics about the rise in these homes are used to justify the premise that people en masse are canceling their cable subscriptions and relying solely on streaming for their TV content. When you cut through the hype and plug into the facts (from independent, well-known syndicated sources), the truth is that MVPD households (wired cable, telco & satellite) have remained steady over the last 15 years, representing 83 percent of HHs, 98 million homes. Broadband-only and broadcast-only homes have increased the number of total U.S. TV households and have not come at the expense of MVPD subscriptions. The majority of households (71 percent) have both Cable+ and broadband, using streaming as a complement to (not replacement of) their TV viewing. For the small group of homes that have cut the cord, the motivation is undeniable: Cost. Across several studies, the desire to cut costs is clearly the reason over other factors often cited. In fact, if cost weren't a factor, 80 percent of cord cutters/nevers would opt for an MVPD subscription.
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Source
"Cutting to the Chase: Disconnecting from Speculation and Plugging into the Facts about Cord Cutting." Video Advertising Bureau, 2017.