Report: Over 60% of Families Have Cut The Cord, What Does it Mean For Linear TV?
The cord-cutting revolution is continuing to advance according to a survey from Future Today. The survey Future Today surveyed over 300 families regarding their linear TV and streaming habits. The resulting report is filled with interesting information, but it all mostly points to bad news for owners and operators of linear TV channels. Nearly two-thirds (62%) of respondents said that they don’t even have access to linear TV, and 90% said that they rarely watch linear TV. This means that not only are people leaving cable behind in huge numbers, but they also aren’t opting for an alternative, be it a live TV streaming service or even an antenna to watch their local channels.
“More families have shifted away from traditional linear TV altogether,” Future Today co-founder Vikrant Mathur said. “As that has occurred, it’s important to better understand how families are choosing to view content and what ad experiences they find worthwhile, especially as ad-supported video-on-demand viewership in the US surges.”
Of course, these numbers do not suggest that people are moving away from TV altogether. The same Future Today survey also showed that 98% of respondents said that they “love” watching TV, and 81% said that TV is their favorite form of entertainment. That means that TV is still a powerful advertising tool, especially in households with children. The survey found that parents reported 52% of kids asked to buy something they saw advertised on TV.
“Kids are the CEO of the streaming household. If a message resonates with them, they are vocal about it to their parents, influencing purchases and brand equity,” Mathur said. “For brands that are trying to connect with millennial parents, having a presence on Kids & Family channels not only provides a conduit to the entire household but also sparks conversations that create lasting brand equity.”
This is all excellent news for owners of free ad-supported TV streaming (FAST) channels. There are currently more than 80 FAST channels dedicated solely to kids’ programming, and that number will certainly grow. Over 25% of households have cut their pay-TV or streaming budget in the last year due to economic conditions, with many switching over to FAST channels to supplement their TV watching.
As good of news as the Future Today survey is for FAST operators, it’s equally bad news for linear TV. If nearly two-thirds of customers can’t even be bothered to find an antenna for their TVs to watch free content, the future of linear channels will likely be completely online.