Research: U.S. Broadband-Only Households to Grow to 40.8 Million by 2023

Broadband-only U.S. households are set to grow from 23.3 million in 2018 to 40.8 million by 2023, according to estimates from Kagan, a media research group within S&P Global Market Intelligence.

“The steep upward trend of due to ‘cord-cutting’ is not surprising given the abundance of online video services on the market, although this could be a circular argument, with more companies jumping on the streaming video bandwagon in response to the growing broadband-only market,” said Tony Lenoir, senior Kagan research analyst at S&P Global Market Intelligence, in a statement.

Kagan expects the segment of broadband homes without a traditional multichannel subscription to account for nearly one-third of U.S. households in the next five years.

Kagan findings show that over-the-top (OTT) products, whether subscription video on demand, direct-to-consumer or virtual multichannel, are offered at competitive prices which is a major factor fueling cord-cutting. Other reasons for the strong projection of broadband-only growth include the ease of joining and cancelling online streaming services, Kagan found. They typically do not require contracts.

“The value proposition of streaming video services touches a chord with the average consumer,” Lenoir said in a statement. “The vast majority of streaming services offer free trial periods, effectively allowing consumers to shop around while bypassing hardware hassles associated with legacy video distribution. This coupled with the fact that streaming services are typically screen-agnostic and seamlessly portable, offer individual, customized consumption for customers.”

Additional findings include:

  • Kagan expects broadband-only homes, or households without a traditional multichannel video package, but a subscription to wireline broadband, to rise at an 11.9% compound annual growth rate from 2018 to 2023.
  • Broadband-only homes are set to account for 41.7% of wireline broadband households by 2023. Kagan expects cable and telco broadband to serve nearly 75% of U.S. households by that time.

Charter Spectrum Softens Q3 Video Sub Loss

Charter Communications Oct. 26 disclosed it lost 66,000 video subscribers in the third quarter, ended Sept. 30, and improvement from 104,000 video subs lost in the previous-year period.

The nation’s third largest pay-TV operator (after acquiring Time Warner Cable and Bright House Networks) attributed the reduction to sales of standalone online TV service Spectrum TV Streamand Spectrum TV Choicevideo packages. It ended the period, however, with 16.1 million video subs – down 258,000 subs from 16.39 million reported last year.

“At the end of 2018, our integration of legacy TWC and Bright House will be largely complete, and we will operate as a single company, with a superior product and value proposition,” CEO Tom Rutledge said in a statement.“With significantly less customer-facing change in 2019, we expect continued improving service metrics with higher demand and retention, faster growth and falling capital intensity, driving meaningful free cash flow growth.”

Indeed, Charter added more than 1 million high-speed broadband customers in the past 12-month period, ending the quarter (266,000 net additions) with 23.3 million.

Warner Bros. Sets ‘DC Universe’ SVOD Pricing

Warner Bros. Digital Labs’ pending over-the-top video service, DC Universe, July 19 disclosed its pricing, which is $74.99 annually pre-ordered or $7.99 monthly upon launch.

Warner will be selling memberships at the 2018 San Diego Comic-Con International, which runs through July 22.

In conjunction with the pricing announcement, Warner released a first-look at the SVOD service’s upcoming original series “Titans” with the trailer premiere.

The series will debut on the digital service in the fall of 2018. In addition, more DC library content has been confirmed for DC Universe, including “Batman Beyond” (1999), the animated “Justice League” series (2001-04) and “Batman: The Brave and the Bold” (2008-11).

DC Universe is also offering The Aquaman Premiere Sweepstakes. Fans who pre-order between Thursday, July 19 (9:30 a.m. PT) and Sunday, July 22 (5 p.m. PT) will be automatically entered for a chance to win two tickets to the U.S. premiere of the Warner Bros. Pictures film Aquaman in December.

Comic-Con attendees who visit the DC booth #1915 and pre-order, will receive an exclusive collectible T-shirt. Fans can also visit the DC UNIVERSE Experience at the Hilton San Diego Gaslamp Quarter to immerse themselves in content from the upcoming service and literally walk through the new originals, beloved classics and iconic comics.

Fans who pre-order a yearly membership before the service’s launch in fall 2018 will get an additional three months of DC Universe for free. Annual memberships will go live with product availability in the fall.

The SVOD service will be available in fall 2018 as a direct-to-consumer digital service, backed by Warner Bros. Digital Networks and built by Warner Bros. Digital Labs.

Subscribers have access to new original live-action and animated series, classic TV series and films, a curated selection of comic books, breaking news, an expansive encyclopedia, and access to exclusive merchandise, among other features.