The cord-nevers demographic, once looked upon with mild interest by the pay-TV industry, has "eclipsed" cord-cutters in size, a new report from Forrester Research states, and the industry needs to learn now how to best serve this upcoming generation of video consumers who have never had a cable subscription and likely never will.
The Video Advertising Bureau said cord cutting is being caused by consumer economic conditions and not an emerging avalanche of direct-to-consumer video choices.
AT&T quietly revealed a regulatory filing that its just-acquired DirecTV asset lost 133,000 satellite TV subscribers in the second quarter, putting an appropriate coda on a week in which cord-cutting concerns graduated to panic.
HBO CEO Richard Plepler dismissed concerns that the company's new direct-to-consumer streaming service, HBO Now, is cannibalizing its core pay-TV product.
Just over two-thirds of Netflix users also have a pay-TV subscription, and about a quarter of them are thinking about cutting the cord.
Add one more study to the litany of cord-cutting woes faced by pay-TV providers. According to a new Digitalsmiths study, 32.4 percent of current cable, satellite and IPTV subscribers say they're "on the fence" about keeping their service and would need enticement to stay. And consumers are increasingly aware of the expanded OTT options available to them, such as Sling TV, making for interesting times in the cable biz.
Approximately 8.4 million U.S. households, or 7 percent of homes, have broadband and at least one over-the-top video service, but do not subscribe to pay-TV, according to new research published Thursday by Parks Associates.
In sports, some fans will adamantly deny the facts that are right in front of them. The same dynamic, I suspect, is at play when many of us ponder pay-TV subscriber losses, and still wonder if wholesale cord-cutting by U.S. consumers will soon get underway. There shouldn't be any debate that radical change in the way U.S. consumers watch television is already occurring.
Pay-TV's first quarter earnings reports showed no definitive evidence that cord cutting is about to go viral. But the signs are troubling. In fact, an examination of linear TV ratings leads to a conclusion that television's disrupted, on-demand future isn't just inevitable, it's already here.
With subscribers for pay-TV companies collectively down 31,000 in the first quarter, cord cutting can officially be classified by the industry as a worrisome trend.