Since television was a staple in homes of middle-class households beginning in the 1950s and 1960s, television has become an integral component in American culture. Although rabbit ear antennae later became cable or satellite subscriptions, which offered an ever-growing amount of information and higher quality, nothing has was changed in the last 50 years.
However, over the past 15 years, changes have established the business. The growth of online and stream services have provided consumers a variety of options. Given that the price of cable is steadily increasing in recent years, many people are more and more moving away from cable and are referring to it to be cutting the cable.
How widespread does this trend really exist? It appears that it’s now an important cause of change in the world of entertainment, and it’s likely that things aren’t likely to change any time very soon. To prove this, we’ve collected 14 of the top intriguing cord cutting statistics we could come across related to cord cutting.
What exactly is Cord Cutting?
One is considered a cord-cutter when they decide to cancel their cable television subscription in favour of a different. The term originates out of the practice of eliminating the actual cord, also known as “cable” that you have from your home, even though cord cutters still depend on a cable in one way or another.
It can also mean dropping your home phone However, it’s something you can do along with dropping cable.
In general when individuals cut the cord, they select one of two choices:
* Over the Air (OTA) Broadcasts The cord cutters go back time a little and select to access their TV via an antenna. You thought technology was over? You’re wrong! It’s still alive and growing in popularity. As cable is becoming more expensive and consumers are looking for alternatives, antennas are returning. But, it’s a less well-known alternative to a subscription to a cable TV subscription, or alternatively streaming.
* Over the Over the Top (OTT) Broadcasts These are the more popular form for cord cutting. It is the term used to describe those who have decided to cut off cable to use alternatives that operate via the internet, mostly to streaming services like Netflix, Hulu, Amazon Prime and others. It could also be referring to live TV options like YouTube TV, Sling TV, Hulu Live, etc. For access to every piece of content online you’ll need to pay more than what most people pay for cable however, most people only choose a handful of channels, and then share the rest and then make do with the content they’re not getting. The wide array options cable alternatives is the main reason that a lot of users are cutting their cords.
OTT broadcasts are becoming more popular due to their ability to greatly enhance the TV viewing experience which is something OTA broadcasts can’t even though they’re the cheapest alternative.
Whatever the case, the increasing costs of cable and the perceived decrease in value are causing disruption to the market that has been a pillar in the entertainment sector since the time that most of us have.
Key Cord Cutting Statistics in 2021
We’re now clear about exactly how cord cutting is, let’s look into some interesting statistics which show just how powerful this trend is, and the potential to change the way we watch television.
For 2019, 6.3 millions of people cut the cord
This brought the total at 39.3 million this year, which is which is an 18.9 percent increase from the previous year. Cord cutters’ number keeps increasing every year, even though the rate of growth is slowing. For a rough example, in the year 2017-2018 there was a surge in cord cutters. increased by 32.8 percent.
In the coming years the amount of people who cut the cord is likely to increase, but when that number increases over time, the change year-over-year will decrease.
There is also an enviable number of customers who are loyal to the cable subscription. The main question is whether the number of loyalists is enough for keeping the business in existence, or if the losses these companies are likely to suffer will be too much for them to deal with.
There will be more than 55 Million Cords Cutters by 2022
Although the year-over-year growth on the percentage of cutters slows but we should still anticipate to see approximately 55 million cord cutters in the United States by 2022, only two years away. This is an increase of 15 million compared to the amount of cord cutters in the United States currently are, which indicates that this trend is not in any way, shape, or form slowing down anytime soon.
The penetration of cable TV will Sink to below 60 percent by 2030.
The rates of penetration for cable TV refer to the proportion of households within the United States that have cable. In the present, despite all cutting of cord cutting that has been happening, the number is about 81 % however, it’s predicted to decrease significantly over the coming decade, to approximately 55 percent.
Take a moment to think about it for a moment . In just ten years time, there’s an 80% chance that the home you visit will be equipped with cable. Maybe you’ve been being a kid and complaining each time your dad or mom sent your grandparents a letter with the phrase “But they don’t contain cable!”
This is quickly being accepted as the standard, though it’s different in that those who don’t have cable typically use at least one streaming service to satisfy their entertainment needs.
35,000,000 Americans Never had cable
To qualify as to be a “cord cutter,” you must first require an active cable subscription. Then, you must end it. In the United States, some 35 million people do not have even a single cable service.
The majority of them are teenagers, whether in college or off the grid. Perhaps they used to have cable as a child because their parents used to have it however, they’ve become accustomed to streaming. When they are on their own and confronted with the possibility of paying their own bill many of these people avoid cable and choose to stick with the streaming-only method, which is a different method of saying that they are cord cutters.
This is a worrying trend that is a concern for this sector of the cable industry. It suggests that the younger generation do not even consider the possibility of having cable which makes it a challenge for companies to find new customers.
Netflix has More Viewers that Cable and Satellite Combined
While cable remains leading in terms in terms of subscribers but when it comes down to the number of viewers, Netflix is officially in the leading position. For cable companies this is a lot of positive news because it means that there are plenty of people who are viewing Netflix more than watching cable and it’s only an issue of time before they realize that they’re being charged for services they never actually utilize.
The problem for cable businesses is this figure does not include the number of viewers on different streaming platforms. If we were to take all of them together, cable would be losing very badly to streaming services in terms of the number of viewers. If, in the near future, people are able to access live television and other live events an alternative source other than cable in the near future, we could be in the midst of the end of the cable industry. This seemed impossible just some years ago.
70% of People Have a Streaming Service
The majority of people currently have a streaming platform. As more and more streaming services become available and become available, we can expect the number to increase, increasing competitors for cable companies , making it harder for them to stay afloat.
This is especially alarming to cable companies when we look at the number of live TV options that are accessible “over the over the top.” Platforms like YouTube TV, Hulu TV, Sling TV, and many more allow viewers to access live TV that was previously exclusive to cable. Since the amount of users to these services increases it is likely that the number of viewers who subscribe to cable TV to decrease further.
The Ratings of Cable Television of Viewers 18-49 have dropped 11 percent.
The people who are in the age group of 18-49 are the ones cable companies care most about. They are the most active customers and the ones are the most likely to be responsive to advertisements for new products. Since advertising is the method by which the companies which create cable possible make money, the fact the fact that so many people in this group are abandoning cable is very troubling for cable businesses.
Overall the rating for cable TV among those aged 18-49 are at a low, down 11 % from last year’s ratings and by 27 percent over the last two years. There there is no evidence to suggest that this trend is going to reverse, with the increasing number of young people are turning to alternative sources, which suggests that the cable businesses are losing their most important segment of the population. This is not a good sign for the industry.
Nearly one-third of people over 50 have dropped their Cable Service
This ought to worry cable companies in a significant way, considering that those over 50 are those most likely to stay with cable. But, the data suggests that those who are over 50 are becoming tired of the increasing cost and unsavory ways of cable companies.
Furthermore, people of this age group aren’t frightened from technology, which might have been the case couple of years ago, in the days when technology was fresh. As proof, take note that two-thirds, sixty percent in fact of those over 50 today rely on online TV sources, most of which are streaming. This is an improvement of nearly 27 percent in the past couple of years, which indicates the fact that cable firms are losing out in what was once among their most loyal customers.
Why do people cut the Cord?
As you can observe it is evident that people are cutting their cords in a flurry But what is the reason behind this? Certain motives are clear, while others aren’t so sure. Here’s a list into some most important reasons people are cutting the cord
The #1 Reason people cut the cord is the Cost
If you’re currently using cable or have recently experienced it, then you’re aware that the cost of your subscription is somewhat out of hand. The average customer pays $107 per month to subscribe and the cost is increasing continuously. In actual fact, it has been always outpacing inflation in the last two decades.
It should come as no shock it is 86.7 per cent of those who cut cords mention the price as the primary reason which eventually prompted their decision to cut the cord.
In the months ahead and over the years it will be interesting to keep track of this development. In the present we only have some streaming options to choose from, however, this is constantly changing because more businesses are embracing streaming. If the time comes when we have to sign up to ten streaming services for $15 per month to keep up with the latest technology in television streaming, cutting the cord is become costly.
At the moment the urge to reduce costs is driving the majority of people who subscribe to cable to one-time and forever end the cable subscription.
Only 34 percent of people are satisfied with the What They Benefit From their subscription
Nobody likes spending lots sum of cash, however, when we do we want to be sure that we’re getting the best value for the money we’re investing. When it comes to cable subscriptions, however it’s not the scenario. Prices haven’t risen into better quality, and the majority of people are looking at their cable television lineups and notice numerous channels that they don’t have yet by their provider to cover. This is evidently frustrating and is an important reason for people who are opting to cut the cord.
40 % of Cord Cutters Do This because of streaming
Another reason that for people to cut the cord is that they prefer streaming services, such as Netflix, Hulu, Amazon Video and so on. regardless of the cost. The majority of the time, less than ” 40 percent” of cord cutters mentioned the desire to stream as their primary motivation.
There are two primary reasons. For one, streaming services generally don’t include advertisements (the lowest priced version of Hulu being an rare exception). If we use cable you are subjected to an endless stream of ads however for certain people they find it too overwhelming. The cost of cutting cable (live television or sports) is not a huge cost to pay.
The third reason is the convenience. When you stream, it is possible to are able to enjoy your favourite shows at any point. Most of the time you can download content so that you can play it offline, which is an excellent option for people who spend a significant amount of their time on the road or in a commute. This is something that you cannot receive with cable and is one of the main reasons why people opt to ditch cable and go with streaming.
One-quarter of Cord Cutters have opted to get Free TV
Surprisingly, about 25% 23 percent of them took the decision to cut the cord because they were looking to get free TV with an antenna. Many of us would think that TV antennas were lost forever, but this is not the case. For people who are not a fan of the channel, it is a fantastic alternative.
All you have to do is pay $50-$200 on an antenna, connect it to place it at the signal you’re looking for and voila! You’ll have free TV for the rest of your all time. Of course, you’ll get much fewer channels (although in certain areas you may receive up to 50 channels) You also lose the possibility of recording shows and carry the shows with you. However, you can have the option of local programs as well as live sports and events.
In this way it’s a very alternative to a happy medium. When people find out about it, they usually decide to use it as their primary alternative to a cable subscription.
Original Programming isn’t the primary driver of Cord Cutting
Even though streaming companies like Netflix, Hulu, and Disney Plus are pouring money into original content to become more appealing alternatives, it’s not the primary reason consumers choose to ditch cable and instead rely on streaming.
In particular, only 7 percent of those have said they’ve decided to cut the cord because most of the content they stream on television is original content that is streaming.
But, as these platforms keep investing in new content this could alter. Original shows that are available on the platforms have becoming more popular and, in recent years, they’ve begun to receive recognition from awards and critics.
In the coming years, you might notice more people switching due to the fact that they don’t want be left out of the new series that these platforms are rolling out. At the moment it’s not the primary reason for cord cutting.
52 percent of Cord Cutters say they don’t Not Know About It
What advantages does cable offer advantage over the streaming service? Traditionally live sports, local programming have been the main advantages of cable, along with cable businesses have been betting on the assumption that viewers will miss these two elements enough that they will remain with cable regardless of the fact that more and different options become accessible to them.
In all, 23 percent of cord cutters admit that they miss live events and 22 percent of them say they don’t miss national and local news. But over half, 52 percent, claim they don’t really miss any news at all.
Of course, this amount is derived from cord cutters, individuals who might not have been interested in the subject. It suggests that once individuals cut the cord, they do not really think about it. This implies that cable businesses must be prepared to end their relationship with the people who choose to cancel their services in favor of alternatives.
Does Cable TV…
After having read these interesting statistics You might be asking whether cable television dead? It’s a tough to answer. The numbers we’ve provided will certainly create the impression that they are, however there are additional factors to take into consideration:
* The growth in other regions of the globe Other parts of the world Cable television has been struggling to grow to grow in Western Europe and North America however it is growing across Eastern Europe, Asia, Africa in addition to Latin America. Also, it’s growing everywhere else. Naturally, this growth isn’t being observed by the same companies operating across Europe or the US which is why these companies, or a lot of them, might die however, cable television as a medium likely won’t disappear anytime soon.
* Service bundles * Service bundles The one thing that will not change is internet. Today, cable companies are also the most popular internet service providers as well, and cable internet remains an extremely reliable and popular types for high-speed Internet. In order to entice customers to stay to cable the companies typically offer bundle deals that include internet that are difficult to resist. In the event that this is the case, customers might continue to pay for cable even though they don’t actually watch it as often. There is also a chance that cable companies will leverage their market position to revitalize cable.
* Exclusive content * Exclusive content Another aspect that may help keep cable alive is the fact that there’s an abundance of content that is exclusive to cable. The question is whether this will be enough to persuade a large enough population to drop cable to stream completely is yet to be determined however, it is something that keeps the business alive.
Because of this it’s unlikely that we’ll experience the complete and total end of cable in the near future. But, it’s evident that the industry has to prepare for a steady loss and massive shifts. The numbers we’ve provided with here today to show how massive this trend is and highlight the problems the state that cable companies are now. Are they able to turn the tide? It’s too early to tell!
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