An escalating trend shows that a significant portion of U.S. internet households now label themselves as "cord cutters," according to the latest research from Parks Associates' Video Services Consumer Insights Dashboard.
The study reveals that 56 million, or 46%, of U.S. internet households are "cord cutters," while 12% are "cord nevers," individuals who have never subscribed to traditional pay TV services.
The Dashboard tracks changes in consumer behavior towards video services, noting a shift towards free-to-air broadcasts or online video platforms as alternatives to traditional cable.
In response, service providers are adjusting their strategies through competitive pricing, various bundling options, and exploring hybrid revenue models. The growth in ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) platforms reflects a consumer demand for more affordable viewing options. Meanwhile, subscription video-on-demand (SVOD) services are testing different pricing structures and exclusive content offerings to keep subscribers engaged.
Jennifer Kent, Vice President of Research at Parks Associates, commented, "Cord Nevers present a unique market opportunity for streaming providers. This group has never valued traditional pay TV subscriptions, but streaming services have successfully tapped into this segment, which either grew up with streaming as the primary video consumption method or holds different expectations for subscription video services."
In the third quarter of 2024, data shows that 59% of subscriptions among the top eight SVOD services are for the ad-supported basic tier, indicating a preference among consumers for cost-saving options over ad-free premium services.
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