The cord-cutting continues. New reported data from TDG Research contends the number of U.S. households with high-speed internet and without pay-TV service will reach 54 million by 2025. The tally was 38 million homes in 2020.
The projection underscores ongoing trends among major pay-TV operators such as Comcast, AT&T and Verizon, which have seen their broadband subscriptions skyrocket while linear TV subs plummet. Broadband is the lifeline distributing over-the-top video into homes.
Beginning in 2010, just 8% of high-speed internet subs had jettisoned pay-TV. That percentage doubled in 2015, reaching 35% in 2020. A majority of domestic broadband homes with pay-TV is expected by 2026.
“A decade ago, the [broadband only] segment was comprised almost exclusively of bleeding-edge adopters; those defined by a fascination with new products and services and a pocketbook to fund their experiments,” senior analyst Paul Hockenbury said in a statement. “Today, the BBO segment is largely defined by early-mainstream dispositions: buying only when the price has come down, the technology has peer-demonstrated benefits, and plenty of support is available.”
Interestingly, broadband homes without pay-TV still consume a lot of small screen entertainment — reportedly just 10% less than the 31 hours consumed weekly by pay-TV households.
Among cord cutters, about 60% of TV viewing is done via streaming video, which is 50% more than broadband homes with pay-TV. Not surprisingly, Netflix, Amazon Prime Video and Hulu are the top-streamed services among BBO households, with Hulu 10% more popular than high-speed internet homes with pay-TV.
About 66% of broadband-only homes stream AVOD content, with 76% opting for YouTube compared with 36% for Pluto TV. More than 33% of BBO homes also use a digital TV antenna, consuming 12 hours of content weekly.