More than a quarter of total US households have reported plans to cancel their cable TV subscription this year. Despite the growth of streaming customers, over half of US viewers aren't willing to spend more than USD 20 on streaming subscriptions.
A recent study, “Future Of TV,” conducted by The Trade Desk revealed that American households are cutting the cord on their cable subscriptions more rapidly than before. “Covid has accelerated cord-cutting trends that were already underway, to a point where less than 50% of US. households today have a cable subscription,” said The Trade Desk chief revenue officer Tim Sims said. “It’s not because US. consumers have fallen out of love with TV, but that there are now more convenient ways of consuming it."
The survey, which received the responses of more than 2,100 US consumers, indicates that 27% of US cable TV subscribers are planning to cut their subscriptions by the end of 2021. That percentage is nearly double the 15% of cable subscribers who reported cutting the cord in 2020, and significantly higher than the approximate 3% annual decline reported by eMarketer before the pandemic began.
Despite the growth of streaming customers, just over half of US viewers aren't willing to spend more than USD 20 on streaming subscriptions. US TV viewers are also more than five times more likely to prefer free or low-cost streaming TV with ads, at a 72%, than over streaming services with higher monthly subscription fees with no ads, at 14%. Consumers are more than twice as likely, 63% versus 26%, to choose free content with ads versus services with a higher monthly fee with no ads.
Following live sports event cancellations and suspensions, 39% of viewers are now accessing live sports events via connected TVs (CTV) such as ad-supported streaming and social media platforms. Only 30% of US consumers considered live sports as a reason for keeping their cable TV subscription, a significant drop from the previous 60% that cited live programming, including sports, as a reason to continue their subscription. More than 20% of those 55 and older said they intend to end their relationship with cable in 2021, an 8% increase from last year.
Advertisers are now finding more opportunities to showcase on streaming platforms as opposed to cable services. Many of them have even implemented the “upfront” ad buying model, a 30-second ad-spot, and TV targeting and measurement.
Covid has accelerated cord-cutting trends that were already underway, to a point where less than 50% of US. households today have a cable subscription. It’s not because US. consumers have fallen out of love with TV, but that there are now more convenient ways of consuming it.” Tim Sims Chief Revenue Officer, The Trade Desk