More U.S. Households Now Have Netflix Than Pay TV, Says PwC
For the first time, more U.S. households have a Netflix account than a pay TV account. That milestone comes from "A New Video World Order," a PwC report that examines how Americans interact with video.
In 2018, 76% of U.S. households used Netflix, while 67% used pay TV. Compare that to 2017, when both were tied at 73%. PwC's data comes from an October 2018 survey of 2,016 adults in the U.S. age 18 to 59 with household incomes over $40,000.
The survey also found that 27% say they're cord-trimmers, 25% are cord-cutters, and 8% are cord-nevers.
While though people often complain of feeling overwhelmed by streaming TV choices, PwC sees the current video relationship as one of empowerment. Using the language of courtship, 19% of those surveyed say they're "in a committed partnership" with their pay TV provider, a rise from 17% in 2017. Also, only 20% says they're "trapped" in their current video relationship, down from 22% in 2017. Even pay TV customers are happier in the current system, because they have more options and have deliberately chosen the one that works best for them.
As streaming becomes more mainstream, it's appealing to an older demographic. In 2018, 28% of those 50 and older had cut the cord, up from 19% in 2017. And while younger adults are less likely to have pay TV service, those who do are happier with their decision.
For more survey results, view "A New Video World Order" for free (no registration required).
Welcome to endless scrolling, the same choices over and over, and frustrating interfaces. Wasn't AI supposed to save us from this?
Netflix's Andy Schuler will reveal how the company makes interactive content work when he presents a Streaming Media East keynote in May.
While the future looks bright for OTT, increased industry convergence and direct-to-consumer relationships require maintaining a high level of trust.
Will pay TV providers finally offer a la cart selection in 2017? PwC say it would win back dissatisfied cord-cutters and cord-nevers.