Study: Cord-Cutting Rises,17.2 Million Broadband-Only by 2017

by , Nov 29, 2012, 12:00 PM
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About 13% of broadband customers don’t have pay-TV services. That equates to 11 million households, according to research firm The Diffusion Group in its newest report on over-the-top growth. That number of broadband-only subscribers should grow to 17.2 million in 2017, TDG said.

“Though pay-TV operators rightly argue that OTT's impact on basic video subscriptions has been negligible, when one focuses exclusively on broadband subscribers - those most likely to have access to OTT services - the numbers tell a different story,” said Michael Greeson, TDG Founding Partner and Director of Research in a statement.

The number of broadband-only homes has grown from 9.5% of households in late 2010, to 11.2% in late 2011, to 12.5% today. The steady uptick is coming from both “cord cutters” and “cord nevers.” Cord cutters have ditched pay TV and tend to be older, with higher incomes and have children at home, TDG said. By contrast, “cord nevers” are usually between 18 and 24, with more than half making less than $30,000. TDG expects both groups to grow in the next five years, and said pay-TV operators should be most concerned about the Cord Nevers because this generation will view cable service as a luxury they don’t need.

1 comment on "Study: Cord-Cutting Rises,17.2 Million Broadband-Only by 2017".

  1. Doug Garnett from Atomic Direct
    commented on: November 29, 2012 at 1:53 p.m.
    Daisy, note that they didn't research actual TV usage. Rather, Diffusion makes huge jumps to conclusions based on connecting data that can't be connected. This is a fundamental research flaw and means the research probably shouldn't be reported.

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