Maybe Cord-Cutting Isn't Slowing Down After All, Says GfK
Are people eager to ditch their pay TV accounts or aren't they? While we've seen studies showing the trend has slowed, consumer research company GfK says cord-cutting has increased in the last year.
According to data from GfK's 2016 Ownership and Trend Report, 17 percent of U.S. homes now access over-the-air programming only, up from 15 percent last year. Additionally, 6 percent of homes use streaming services exclusively, up from 4 percent a year ago.
“The fact that a statistically significant increase in broadcast-only reception occurred over just one year may be further proof that the cord-cutting/cord-never phenomenon is accelerating,” says David Tice, senior vice president for GfK’s Media and Entertainment practice.
Homes with a resident between 18 and 34 are more likely to use pay TV alternatives, while those with a resident 50 or older are more likely to have a pay TV account. About 3 percent of U.S. homes don't have a TV.
Household income plays a role in TV service selection. Homes with incomes under $30,000 per year are more likely to rely on over-the-air content, and those with incomes over $50,000 per year are more likely to subscribe to satellite TV.
GfK has created an infographic to highlight findings from the report. It surveyed over 3,000 U.S. households to collect its data.
While many people enjoy the reliability and comfort of their pay TV services, young adults are far more likely to choose streaming options.
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Adding more weight to the argument that TVE has stalled, a report finds that few homes access TVE content monthly, and that authentication is a huge deterrent.
Regular viewers of the SVOD average watching 10 shows and 4 movies on it each week; mobile Netflix viewing is also on the rise.