Research Firm Finds Evidence of Cord-Cutting

Article Featured Image

Maybe there's something to this cord-cutting movement, after all. While the common wisdom has been that few consumers are interested in ditching their pay TV services, a report by technology market research firm Interpret has found that the number of consumers who stream TV content but don't subscribe to a pay TV service has increased by 18 percent this year.

What's more surprising, though, is why they're doing it. People aren't going online to avoid commercials, the study finds, but for convenience. Viewers appreciate the ability to easily catch missed episodes.

During the period of the report, Interpret found that TV streaming traffic on the four major broadcast sites-ABC.com, CBS,com, Fox.com, and NBC.com-actually declined. The big winners were Hulu and Netflix, which saw a significant increase in streaming.

"This is good news for advertisers, but also highlights the challenges faced by content owners," says Michael Dowling, CEO of Interpret LLC. "As consumer demand for TV everywhere intensifies, content owners are managing a delicate balance between overlapping constituents-those that continue to deliver valuable revenue streams and those whose models, while growing in popularity among consumers, don't yet produce sufficient revenue to supplant the older models."

The report is titled "TV Everywhere Revisited: How Distributors, Advertisers and Content Owners Should Respond to Consumer Trends," and is available for purchase for $795.

Streaming Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

Streaming Gains Ground in the Living Room; Over 50% Connected

But there's a giant gulf between having the ability to stream and actually streaming, research finds.

Harris Interactive Poll Finds Requirements for Cord-Cutting

Most people would be willing to switch to streamed content, but their needs are a long ways from being met.

Cutting the Cord: Will Online Video Kill the Cable Companies?

While the demise of the cable industry is often exaggerated, a panel at the Streaming Media East conference was in agreement that changes in strategy are necessary. In some cases, they're already occurring.

Cord-Cutting a Myth; Cord-Swapping Is Real

A Nielsen exec declares cord-cutting a myth; also says that many young people start out by getting programs online-only.

TV Remotes Soon to Have Netflix Button

Connected TVs, Blu-ray disc players, and set-top boxes to feature the one-click option.

Hulu and the Future of TV

Hulu CEO Jason Kilar talks about his team, his strategy, and the company's pursuit of better advertising

Poll Finds Age Gap in Cord Cutting

The number of people turning away from pay TV is small, but younger people are more willing.