Research: Increase in Digital Antenna Use Indicates Cord Cutting

The percentage of U.S. broadband households that use digital antennas in their home has steadily increased, reaching 20% near the end of 2017, up from 16% in early 2015, according to new consumer research by Parks Associates.

The increase coincides with a steady decline in pay-TV subscriptions and an increase in OTT video subscriptions, according to the report, “360 View: Access and Entertainment and Broadband Households.”

“Increasingly, consumers are cobbling together their own bundles of content sources. Digital antennas are experiencing a resurgence as consumers consider over-the-air TV and OTT video services as alternatives to pay TV,” said Brett Sappington, senior director of research, Parks Associates. “The percentage of ‘Never’ households (households that have never subscribed to pay-TV services) has held steady, and the percentage of households actually cutting the cord has increased between 2015 and 2017. Antennas are an affordable source for local channels to these households.”

Parks Associates noted that high cost and low price/value perception dominate the reasons for service cancellation and bundle shaving. More than 50% of the households that have switched, shaved or cut the cord cite the service is “not worth the cost,” according to Parks Associates.

“Pay-TV providers need to address this value perception gap and re-establish their role as the consumers’ source for interesting content,” Sappington said. “Opportunities are available. Only 46% of pay-TV subscribers are aware that they can access video-on-demand content from their operator, including free programming. Many indicate that they want to purchase online video services through their pay-TV provider and to access the service through their channel guide.”

The report also found:

  • 63% of subscribers who cannot currently restart programs from the beginning find that feature to be appealing;
  • 17% of consumers who cancel their pay-TV service would have stayed with their provider if there were no monthly fees for their set-top boxes;
  • Average fees for standalone broadband have increased nearly 25% since 2010; and
  • 20% of Wi-Fi households experience problems with coverage in their home.

Study: Cord Cutters Saving More Than $100 a Month by Dumping Cable

Cord cutters are saving an average of $115.33 a month by nixing cable, according to a survey from personal finance site LendEDU.

LendEDU surveyed 500 cord-cutters who canceled their traditional cable services within the last two years and 500 consumers that are still using a cable subscription for their homes.

Cord cutters are also saving an average of $51.38 a month by using online streaming subscriptions that are not theirs, the survey found. About a third of cord cutters (34%) use a service that isn’t theirs.

Cord cutters did spend a bit more on streaming services after cutting cable, an average of $35.33 a month versus $33.74 before.

Meanwhile, even cable subscribers spent an average of $30.87 a month on streaming services, and just over half (52%) of that group said they used their cable service more than streaming. Still, that means 48% of cable subscribers said they use streaming more — an ominous sign for the future of cable, according to LeadEDU

“As the years go by and cable is rendered useless, due to online streaming services becoming more robust, one would have to imagine these results will reverse,” the report stated.

Even the majority of cable subscribers (56% versus 44%) said they would consider cutting the cord, according to the survey.

“Chances are that if cable users are already thinking about cutting the cord in mass, it will happen eventually,” the report stated.

For more on the report visit: https://lendedu.com/blog/cord-cutters-saving-money/