Cable Catastrophe: Cord-Cutting Continues at Fastest Rate Ever

CableCatastrophe
AP Photo/Matt Rourke

American consumers are dumping traditional cable packages at a faster rate than ever before, electing instead to purchase cheaper and more customizable digital TV service, according to a new study.

Data from a Magid Broadcast Study and reported upon by Axios says consumers are more inclined to cut the cord and make the switch to streamed TV content from major companies, including Amazon, Netflix, and Hulu TV.

Data: Magid Proprietary Insights, April 2017; Chart: Andrew Witherspoon / Axios

A similar study conducted by the Interactive Advertising Bureau this month found a 56 percent increase in consumers watching their favorite program on a “Streaming Enabled TV,” a television that can access Internet-based video content, commonly referred to as a “Smart TV.”, or through the use of a “Video Streaming Device,” including Roku, Apple TV, or an Amazon Fire Stick.

The Interactive Advertising Bureau study also found that ownership of a smart TV and a video streaming device saw double digit increases between 2015 and 2017 among adults over the age of 18.

In an attempt to adapt to trends toward tailor-made media bundles, traditional content powerhouses, including HBO, Showtime, and Starz now offer smaller, cheaper packages.

Streaming film and TV services like AT&T’s DirecTV Now and Dish Network’s Sling TV have helped recoup customers who have opted to ditch their traditional cable services.

However, Americans’ propensity for cord-cutting continues to hit major media players.

Last month, Disney-owned ESPN began the process of laying off an estimated 100 staffers and employees. Earlier this month, Dish Network reported a steep decline in pay subscribers in its first fiscal quarter, announcing that some 143,000 net subscribers cancelled their service in the fourth quarter.

 

Follow Jerome Hudson on Twitter @jeromeehudson

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