The rise of cord-nevers is a real threat to the pay-TV industry, but the number of cord-cutters is growing, too.
Similar findings from two research firms illuminate the changing nature of consumers’ relationship with their cable cord. For starters, Parks Associates reports that 10% of U.S. broadband homes have snipped the cord to cable TV, with 25% having done so in the last 12 months.
These cord-cutters are using online video resources to get their entertainment fix instead.
Parks also found that another 7% of broadband homes have downgraded their multichannel video service in the last year, making them “cord shavers.” Meanwhile, another 3% are
“cord-nevers.” Those are consumers who have never subscribed to pay TV but do rely on streaming video.
In related news, Forrester Research reported that converting those cord-nevers into customers will be a daunting prospect. The research firm said that by 2025 about half of U.S. adults under 32 won’t pay for cable TV.
Multichannel providers are bulking up their TV Everywhere offerings, and may be able to keep some of these customers with such fare, but broadband is becoming the more valuable service for providers, since it’s enabling the streaming alternatives that are rising in popularity. EMarketer recently reported that the three dominant OTT content services – Hulu, Netflix and Amazon — are all on pace for rapid growth in the next few years.