Cord-Cutting Continues to Grow
By Steve Peterson
One of the things that keeps cable company executives awake at night is the increase in cord-cutting — people giving up entirely on cable TV service in favor of getting their video content from the internet. While the numbers are small so far, those planning to cut the cord in the coming year are increasing — and that remains a worrisome sign.
The latest survey from Frank M. Magid Associates shows that about 2.9% of US pay TV consumers are “very likely” to cancel cable TV service within the next year. That was up from last year’s survey, which showed 2.7% preparing to cut the cord, and the year before, when it was 2.2%.
“These are very small numbers in terms of future cord-cutting from American consumers,” said Mike Vorhaus, president of Magid Advisors. “But in mass media, very small numbers are very important, too.” The survey sampled 2,400 consumers aged eight to 64 in June, 2014.
Perhaps scarier to cable companies, the demographic most likely to drop cable TV is the coveted 25-34 age range, 4.9% of whom said they are very likely to cut the cord.
This does not reflect the growing propensity of young consumers to never sign up for cable TV in the first place, preferring to focus on high-speed internet service and get whatever video they want from that service.
The growth of cord-cutting also hints at the increasing interest in live streaming, with Amazon’s recent purchase of Twitch and its over 55 million monthly streamers. Those who obsessively watch video streams of people playing games are in the same demographic as the most probable cord-cutters, and it’s not coincidental. Advertisers are looking for ways to reach that demographic, and cable is likely to be losing those eyeballs to streaming and other places in the years to come.
This article was originally published on alistdaily.com, the insiders’ source for editorial focused on entertainment marketing news, and content partner with VideoInk. It’s been lightly edited from its original version. Follow [a]listdaily on Twitter @alistdaily or subscribe for the latest news, data and more in your inbox.Tags: Alist Daily, alistdaily, Amazon, cable TV, Cord Cutters, cord cutting, frank m. magid associates, Livestream, pay tv, twitch