10% of broadband households are cord-cutters


Michelle Clancy

| 09 October 2015

A full 10% of US broadband households are now cord-cutters, according to Parks Associates.

The research found that a quarter of these have cancelled their pay-TV service in the past 12 months, and are instead using online video sources.

In addition, 7% of US broadband households are recent cord-shavers - those who have downgraded their pay-TV service within the past 12 months and use online video sources. Cord-nevers, or consumers who have never subscribed to a pay-TV service but do use online video sources, represent 3% of broadband households.

"Although pay-TV adoption rates have held fairly steady over the past four years, the video industry is highly sensitive to these groups of consumers," said Brett Sappington, director of research at Parks Associates. "Cord-cutters, -shavers, and -nevers represent both the risk and opportunity facing the industry today. As viewing evolves, companies want to be sure that they are in a position to react to trends and adequately capture revenues. The massive influx of new OTT video services in 2015 is one example of video market players making moves to prepare for the new future of video entertainment."

The research follows other figures from the firm which found that households with a streaming media device hooked up to the TV, like Apple TV, Roku (which just launched the Roku 4) or Chromecast, watch an average of 22 hours of video on television per week. That's four hours more than households without a streaming device, which clock in at just 18 hours per week on average.