Analysts, consumers, and industry professionals alike all agree that streaming is the future of entertainment, but is the future officially here? According to a study released on Tuesday by research firm Civic Science, cord-cutting has surpassed cable and satellite TV usage in the United States.
Throughout the first half of 2022, cord-cutting has been inching closer to a majority amongst domestic consumers and in Civic Science’s analysis was neck-and-neck with traditional pay-TV in May. However, in the June round of analysis, cord-cutting households have risen to 51.2% of all homes in the U.S. that pay for TV. The study compares cord-cutters to those that subscribe to either cable or satellite.
While one can question the specifics of the actual numbers in the study, the overall trend follows what has been seen across the industry. Last week, Neilsen released its latest report showing that streaming had set a new record when it comes to TV consumption time. Streaming came in at 31.9% of viewing, though still behind cable at 36.5% with broadcast coming in at 24.4%.
While the two reports look at the migration to streaming in different ways, it does underline the fact that there is a steady, unabated move to streaming for consumers across the country.
Civic Science reports that nearly half (46%) of those that have not yet cut the cord are “considering it,” and that of those that have recently made the switch away from a traditional pay-TV subscription, only 6% regret their decision.
The study found that cord-cutters are a more diverse group compared to those that stick with traditional subscriptions and are more likely to be under 55 years old; however, the percentage doubles when examining consumers under 34. The group also is more likely to live either in urban or rural parts of the country as opposed to suburban communities. That would seem to coincide with the finding that cord-cutters are more likely to have a household income of less than $50,000 per year.
Exhorbanent prices are the leading reason behind consumers cutting the cord according to Civic Science, with nearly three-quarters (73%) of adults aged 35-54 citing cost as the reason that they ditched cable. Poor customer service and preferred content on streaming were also major drivers in cord-cutting.
Whether America is now officially a streaming-majority country or not, there is no doubt that cord-cutting is continuing at a record pace. And while streaming services have yet to iron out all of their own individual pain points, it is clear that a significant number of U.S. consumers are finding what they are looking for outside of the traditional TV bundle.