Cord Cutting Statistics and Trends [2023 Edition] – NBC US


Thanks to the increased cost of cable subscriptions and the massive content libraries available on streaming services, people are now leaving behind traditional pay TV. Whether looking to escape advertisement, reduce spending, or both, many cord-cutters leave cable and satellite TV yearly. 80 million US households are projected to cut cords by 2026.

There is even a new demographic of “cord–never” adults who have only ever used streaming services for entertainment in their entire lives. Despite that, cable TV is still used by a large population of loyal and returning customers. To understand the cord-cutting revolution, you must dive into the data. Let’s get started.

Top Cord-Cutting Statistics
(broadbandsearch.net)

Top Cord-Cutting Statistics

  • Cord-cutting households in the United States will reach 80.7 million by 2026.
  • Satellite TV and cable providers have lost in 2014 over 20 million subscribers.
  • There will be over 1.68 billion subscribers of SVOD globally by 2027.
  • Adults of ages 18 to 29 are the most productive cord-cutters.
  • About 30% of Americans using cable TV say they will likely cancel.
  • Five hundred twenty-five cord-cutters say they have caught everything about cable TV. 

General Cord-Cutting Statistics

General Cord-Cutting Statistics 

 

How many subscribers are lost by cable companies every year? What will cord-cutting be like in the future? Here are the statistics for cord cutting you need to know.

1. Cord-cutting Households in the United States Will Reach 80.7 Million By 2016.

Cord-cutting households will exceed the number of pay TV households for the first time in 2023. By 2026, cord-cutting families in the US will reach 80.7 million compared to the 54.3 million households that use TV-paid.

2. Pay TV Providers Have Lost Over 20 Million US Subscribers Since 2014.

Satellite and US cable providers have been losing many set subscribers since 2014. The COVID-19 pandemic has influenced as more than 5 million subscribers cut the cord in 2020.

3. The Average Household Spends $217.42 Monthly On a Cable Package.

The high cost of cable subscriptions is a major contributing factor to the increase in cord-cutting households. On average, families in the US pay more for cable subscriptions than all other utilities combined.

4. There Are Over 354 Million Streaming Subscriptions in the US Alone.

The number of streaming households is alarming, and it only gets bigger. By 2027, it is estimated that 86% of households with a TV will have a streaming subscription, with a total of 458 million subscriptions and an average of 4.37 for each family.

5. The Share of Adults in the US Who Subscribe to Satellite or Cable TV Has Fallen 265 Since 2015.

In 2015, 76% of American adults paid for cable or satellite TV packages. As of 2021, the number reduced to just 56%

6. Traditional Cable Subscribers in the United States Had the Worst Year in History in 2009.

Due to several factors, including decreased workers’ wages and increased prices, the traditional cable providers in the 2000s experienced the worst subscription year in 2009. Regarding the market downturn, there was a 7% gap between wage and basic cable price, representing a negative change of 1.5% against a fee of 5.5%.

There was a huge gap in 2002 between wage and price increases, representing a 6.9% point gap for the traditional cable television providers. According to research, the inflation and price increase rate rose 6.9% in 2009 from 2002 to 6.3% in the conventional TV provider industry.

Over the years, wage and price increases move closer with each passing year. Still, in recent times, we have been witnessing a tightening gap between inflation, wages, and expanded basic cable prices in the United States. This is expected to happen because wages and inflation are connected, but one is positive and negative.

Negative: In the United States, inflation and wages usually decrease well below the increases in traditional prices, which has made Americans pay a higher percentage of their salaries on conventional cable television.

Positive: They have been a decrease in the gap between inflation, wages, and the increase in prices besides what occurred in 2009, and if this trend continues, there will be about a 0.6% gap between these three variables.

7. More People Are Using Ads-Supported Streaming Services Due to the Need For Free And Cheaper Subscription Rates.

One major benefit of streaming services is reducing pop-up ads appearing on each viewed page. When the price of a subscription increases, consumers become wary and are likely to shift to other options that contain ads while viewing content. According to a survey conducted by Deloitte in 2023, about 60% of respondents interviewed used a free or ad-supported streaming service, with 40% stating that they watch more ads than previously.

Video Streaming Statistics

Video Streaming Statistics

Cord cutting is only relevant with SVOD services like HULU, Netflix, and Amazon Prime Video. Streaming enables viewers to be entertained on their terms, without commercial interruptions, and on demand.

8. There Will Be Global SVOD Subscriptions of 1.68 Billion By 2027.

According to predictions by Digital TV Research, streaming video-on-demand subscriptions will increase by 475 million between 2021 and 2027. The major services by the number of subscriptions in 2027 will be Netflix at 251 million. Amazon at 250 million, Disney + at 207 million, HBO Max at 77 million, and Paramount + at 82 million.

9. There Are 10,410 Seasons Available For TV On Streaming Between Netflix, Hulu, and Amazon Prime Video.

With only three subscriptions and less than $40 per month, cord-cutters have access to over 10,000 seasons of commercial-free television shows. The three services have a combined stream of 11,078 movies.

10. Netflix Earns Almost $30 Billion in Annual Revenue.

Ten years ago, Netflix earned just over $3 billion as its annual revenue. Today, that number has blossomed to $29.7 billion with a net income of $ 5.16 billion. The company also has more than 11,000 employees across 60 countries.

11. 38% of Americans Believe That Netflix Provides the Best Original Streaming Content.

In 2019, 45% of Americans had thought Netflix had the best original library. That number has reduced since then, but Netflix is still way behind the competition. One of the best platforms for original content is Amazon Prime Video, with 11% of viewers who believe its content is the best. Hulu comes in at 3rd place with 9%, closely followed by HBO Max with 8%.

12. Apple TV + Has 25 Million Subscribers On Its Platforms.

Apple TV+ attracts millions of subscribers with originals like the Oscar-winning film Coda and Ted Lasso. The platform currently has 25 million paid subscribers and 50 million users with access to free promotions.

13. Ad-Supported Streaming Services Are Growing Faster Than Subscription-Based Streaming Services.

Households streaming ad-supported video increased between 2020 and 2022 by 29%, outpacing subscription streaming services grew by 22% within the same period. Platforms like Sling and Tubi provide viewers access to content without monthly subscriptions. Rather, the content is funded by ads like broadcast television.

The live TV plan at $82.99 monthly is currently more than twice the cost of its contemporaries in the industry, including ESPN+ and Disney+ platforms.

14. Sling TV: Your Gateway to Streaming Live TV and On-demand Content Anytime, Anywhere.

The company, in late 2019, had its second price increase in five years in a row as its orange and blue package rose to $30 monthly from the previous rate of $25, while its combo package also had an increase from $40 to $45 monthly. Over the years, there has been an increase in both boxes, and at the end of 2022, it rose to $60 each month.

15. Vidgo: From the Inception of Vidgo in 2018, it Has Quite a Strange and Unexpected Pricing History.

It started with the base English package at $39.99 but dropped its price to $19.99 in 2019 due to the introduction of a lightbox. The base price bounced back in 2020 to $45 for each month, and in 2023, its service costs $69.99, with plans of an increase by the company to $99.99 every month. An analysis of the price change for live television streaming service from the year 2019 to 2021

Direct TV streaming increased its entry point subscription rate by 30% in 2019 compared to what was obtainable in the previous year. Across all the service providers, only the now non-existing play station Vue service had better prices at all its packages during that period. Despite the known price increment by cable cut providers, Philo remains the lowest-cost player in the market, as the price increase is often connected to the demands of channel providers.

Research has discovered that the increase in carriage fees for cord-cutting and traditional cable TV services is because of the more money being offered to mostly local broadcast networksSince 2006, local broadcast network fee has experienced over 600 percent rise while the local networks, as well as cable and premium networks, have about a 90% rise from 2009.

Live and On-demand Streaming

Live and On-demand Streaming

16. AT&T TV is 51% Pricier Than Other Streaming Channels.

Users are becoming anxious due to the streaming services’ constant price increase, especially AT&T TV. The streaming service has become pricier and is getting a lot of criticism from its customers. The streaming station even changed the name of their services (from DirecTV to AT&T TV and then DirecTV stream), which annoyed their customers. However, people became more frustrated due to their high cost. They stopped using AT&T services because of it. This is why the streaming station has numerous subscribers.

Moreover, Comparitech data shows that AT&T TV has been increasing its package price rate yearly since 2019. In 2017, new streaming services increased in the market. They started with affordable prices worth less than $50 per month. However, in 2019, there was an alteration. Numerous services started charging their user more than $50 every month. AT&T was the main culprit, as its services price soared by 57%, from $75 to $135.

In 2020, the previously affordable AT&T basic package soared from $50 to $65 a month. (Which was a 26% increase). No wonder they lost a bunch of subscribers that year! According to the Comparitech data, Philo streaming services differ from its rivals. Since its launch, the platform has kept its service price at $25/month.

17. Since 2015, VMVPDs Have Increased Search Interest By 150%.

More and more people are searching for live TV streaming services, vMVPDs, and it’s increased by 150% since 2015. According to data from Google Trends, cord-cutters on traditional TV are curious about these services. The interest in vMVPDs peaked in September 2019, and people aren’t losing interest anytime soon.

Sling TV is popular because it was among the first platforms to introduce the cord-cutting service. It offered a “pick what you want” model and was launched in 2015 (though FuboTV, which focused on soccer, came out a month earlier). Also, PlayStation Vue started in 2015. However, 2017 was a big deal for this kind of service because five out of the seven biggest ones came out that year.

The latest big service to launch was AT&T TV in 2018, responding to platforms that don’t include sports streaming, like Philo. According to search trends, vMVPDs search interest skyrocketed in September. That’s because it’s the month the other big streaming services usually make important announcements or changes to their benefit. Out of the ten vMVPDs launched in the US marketplace, PlayStation Vue and AT&T watch TV are no longer in business.

18. YouTube TV Has Become the Most-Searched Live TV Streaming Service in the Globe.

Sling TV used to be a big name in this market due to its clever advertising. With this tactic, sling TV stayed at the top for five years. Currently, Sling TVs rarely see new customers due to many competitors in the market. Sling TV started facing real problems in late October or early November 2017. That’s about five to six months after YouTube TV came onto the scene. YouTube TV began in a few big cities but quickly spread to more places by December 2017.

People began searching for YouTube TV more than Sling TV around January 2019, which is also when Google announced that people could get YouTube TV anywhere in the US. That’s when YouTube TV took the lead and dominated the market. However, other services are competing to be the second-best. Philo and FuboTV are gaining ground, and popular sites like Sling TV and Hulu have gotten strikingly less in the past few years.

19. The World of On-Demand Streaming is Heating Up and Getting Crowded.

Currently, Netflix is #1 in the world of on-demand streaming, with 232.5 million subscribers worldwide. They were the first to nail the whole on-demand streaming service, which made them grow more than their competitors. But now, more than 300 on-demand streaming services are fighting for a limited number of subscribers.

According to Paste magazine, 70% of folks feel there are too many choices, which could be better news for new services trying to break in. Some big new players in this field include Disney+, Apple TV+, AMC+, HBO Max, Discovery+, Peacock (NBC), Quibi, and Paramount +, which used to be CBS All Access but got a makeover in 2021.

Furthermore, cord-cutting enables people to pick from the over 100 specialized on-demand services. This means there are many options in the market, and some experts think it’s getting a bit crowded – they even call it a streaming service bubble. Many US adults are paying for more than one streaming service, and 88% subscribe to at least one service. But in the last six months, about 19% of folks switched to services with ads to save money; a quarter of them even canceled a subscription. This could be why platforms like TikTok, where people share their stuff for free, have become so popular.

20. Most People Who’ve Ditched Cable (Cord-Cutters) Love Original Shows and Movies.

Netflix, HBO & Hulu compete with each other, which is why they make unique and quality content to rank higher. According to research by HBR, most people cutting cords love watching exclusive content, which is why they sign up for streaming services. To grow their customer base, live streaming companies must keep producing original content, as shown in the State of Media and Entertainment 2023 report.

21. On-demand Streaming Services Give Their All (Including Funds) to Produce Original Shows and Videos.

Many streaming services believe that creating mind-blowing content keeps them ahead of their competitor, which is a fact. Also, many on-demand streaming providers have increased their content budgets due to the crowd offering on-demand services. Who wouldn’t choose original and quality storylines over counterfeit? That’s why streaming companies win viewers and subscribers with unique series or videos. Below companies spend heavily to create original content:

Netflix spent an astounding 17 billion dollars on originals in 2021 and intends to keep a splurge of expenditures for the foreseeable future and to offer viewers what’s worth the subscription.

Since 2018, the number of exclusive Amazon Prime videos has tripled. The company spent over $1 billion to produce one of its prime videos, The Lord of the Rings. The Rings of Power’s first season was made with $462 million, which is why it’s the costliest series ever. Additionally, Amazon spent 16.6 billion dollars on its content in 2022.

Apple TV spends $7 billion annually on original television series and videos.

Disney intends to spend 10.5 billion dollars on original content in 2023.

Competing with Disney and Netflix, HBO/HBO Max envisioned to invest over $18 billion in their content in 2022.

In 2022, Comcast planned on spending twice as much on peacock streaming services, jerking it up to $3 billion. They also have plans to spend even more on shows and content made in the USA in the next few years, around $5 billion. Additionally, Streaming services pay original shows and movie script writers massively. 

However, viewers can enjoy quality content and decide how many services they want to pay for. Not surprisingly, people, especially Netflix users, are regularly sharing their passwords, which is why Netflix and other streaming sites are planning on disenabling password shares. According to a study, password sharing has caused the streaming industry to lose $9.1 billion.

22. Netflix Videos and Series Releases Were Reduced By 72% Due to the COVID-19 Pandemic.

The COVID-19 in 2020 affected Hollywood negatively, including Netflix’s release schedule. Netflix, known for two roles (releasing originally-made content or licensed content), couldn’t make new videos due to the pandemic. They released a few TV shows and movies that got higher ratings (like 80% or more on IMDb) from their production than in 2019. It was a big drop, a 72% decrease, to be exact.

Before the pandemic, Netflix had already created various content not in the chart above. The data shows just Netflix TV content high ranking. The streaming company has produced 164 original and 67 paid or licensed content since 2008. Before the pandemic, Netflix had a high rate of original titles or content. But when COVID-19 began, they slowed down. To ensure users still had plenty to watch, Netflix started paying for content instead (licensed content). Their high-rated TV shows and movies increased from 9 to 12 in 2020.

Conclusion

Cord-cutting has become very popular in the US and across the globe. In 2021, more than 31 million American households discarded traditional TV subscriptions. Also, cable TV is making users switch, as 78% of cord-cutters reported doing it to save money. As streaming services increase in popularity, cord-cutting will keep growing as well. According to predictions, over 70% of US households will discard cable or satellite TV in 2024.

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