September 10, 2020
Pay-TV continues to lose appeal among Internet-connected (broadband) homes in the U.S. New data from Kagan, a unit of S&P Global Market Intelligence, found that 37% of broadband homes have cut the cord with traditional cable, telco or satellite TV distribution. That’s up from 12.5% of broadband homes six years ago.
The percentage of U.S. households without pay-TV service now hovers around 30%. In 2015, there were almost 100 million pay-TV households, a number that dropped to 86 million in 2019.
Notably, the number of broadband-enabled homes has increased 80% from 2019 to 2020 due in large part to house-bound consumers cutting costs during the coronavirus pandemic.
“Given the economic headwinds of the first half, U.S. households likely were looking to cut back on discretionary spending, including entertainment,” analyst Tony Lenoir wrote in a note.