Study: Only 25% of U.S. Adults to Subscribe to Cable in Coming Years
It’s been a rough week for streaming, with the decline of Netflix’s subscriber totals and stock price, as well as the impromptu shuttering of CNN+, but the future of entertainment is still very much in the streaming space according to a new report from software and video advertising company Pixability. The company’s recent study indicates that the number of U.S. adults who subscribe to cable is on the precipice of a dramatic decline.
According to their findings, currently, 59% of adults in the United States subscribe to cable, but nearly 2/3 (63%) of those believe that they will cut the cord within the next year. If those numbers are borne out, that would leave just 25% of U.S. adults subscribing to cable in a year or so. Unsurprisingly, the largest subset of the quarter of the population planning to keep their cable subscription is adults over the age of 65.
“While we’re all aware of the shift from traditional TV to connected TV, this study revealed that the shift is accelerating faster than many people suspected,” Pixability CEO David George said. “As this shift continues, YouTube’s viewership on TV screens is growing exponentially and it has become the top ad-supported platform for CTV reach — and a new mainstream option for TV advertisers.”
The study also focused on the rise of YouTube and the variety of ways that viewers stream from the platform. The report indicates that 87% of U.S. adults regularly watch content on YouTube and that they are increasingly doing so from their TV as opposed to their mobile devices. While mobile is still the leader for streaming YouTube content (93%), via the TV app is quickly gaining (83%).
With competition, financial concerns, and market saturation growing rapidly across the streaming space, it’s important for the industry to remember that there is still room for streaming to grow, as long as they approach it wisely.