Black audiences are increasingly opting to cut the cord, a new Horowitz study finds.
Though Black households were shedding cable at a slower rate as compared to the overall market, Horowitz data shows that over the past four years, MVPD penetration among Black households has declined from 88% in 2017 to 61% in 2021 — a 25% decrease. Among Black consumers who are cord-cutters, half have cut the cord within the past three years.
In 2018, 69% of Black households were “content omnivores,” a term Horowitz coined in 2017 to describe households who are the hungriest for content and therefore pay for traditional MVPD services as well as a variety of streaming services to access all the content they want.
In this year’s study, only one in three (33%) Black households are content omnivores; almost four in 10 rely on combinations of streaming services, digital antennas, and/or vMVPD services to access TV content (one in four rely only on traditional MVPD services and do not stream at all).
Income and age play important roles in platform choices, according to Horowitz. Black households with lower incomes are less likely to subscribe to traditional MVPDs, and 80% of Black cord-cutters believe that they are saving at least a decent amount after having done so. Older Black TV content viewers are more likely to subscribe to MVPD services (65% among those 50-plus) and to use antennas (28% among those 50-plus) than younger Black TV content viewers (57% and 12% each, respectively).
Despite shedding the MVPD cord, there is still interest in many of the features of the multichannel experience. For example, 64% of Black TV content viewers say that they enjoy flipping through channels, and the study finds that Black TV content viewers still highly value live television, local broadcast news, national news and sports content — the mainstays of traditional providers.
Culturally relevant content is also in high demand among Black audiences, with 60% of Black consumers watching content geared to Black audiences at least weekly.
“Horowitz has long asserted that Black consumers are some of the best customers for entertainment content and services,” said Adriana Waterston, Horowitz’s chief revenue officer and insights and strategy lead, in a statement. “These audiences should not be taken for granted. Many companies are late to the game, only now focusing on the Black audience in the context of BLM and new diversity mandates. To not be viewed as simply pandering, companies who hope to serve the Black audience must make meaningful and sustained investments, not just in programming and marketing, but in community outreach and support, in order to earn this valuable audience’s trust.”