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HomeNewsInternational NewsUS faces heavy cord cutting which may grow 33% ; pay-TV in danger: Report
Saturday, 28 July 2018 05:44

US faces heavy cord cutting which may grow 33% ; pay-TV in danger: Report

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As per eMarketer’s latest US pay TV/OTT forecast, the USA is facing heavy rate of card cutting which puts pay-TV in danger. As per report, the number of cord-cutters (adults who’ve ever cancelled pay TV service and continue without it) is expected to reach 32.8% this year to 33 million. That’s higher than the 22% growth rate (27.1 million) projected in July 2017.

The report reveals that the traditional pay-TV providers are not able to fight the onslaught of OTT platforms despite forming partnerships with former over-the-top (OTT) rivals to retain customers. Overall, 186.7 million US adults will watch pay TV (cable, satellite or telco) in 2018, down 3.8% over last year. That’s slightly higher than the 3.4% dip in 2017. Satellite providers will have the biggest decline, followed by the telco.

eMarketer senior forecasting analyst Christopher Bendtsen commented: “Most of the major traditional TV providers [Charter, Comcast, Dish, etc.] now have some way to integrate with Netflix. These partnerships are still in the early stages, so we don’t foresee them having a significant impact reducing churn this year. With more pay TV and OTT partnerships expected in the future, combined with other strategies, providers could eventually slow—but not stop—the losses.”

The streaming platforms are growing at the expense of pay TV losses. In fact, eMarketer has increased its future viewership estimates for YouTube, Netflix, Amazon, and Hulu. Growth is being fueled by more original programming and demand for multiple services.

eMarketer principal analyst Paul Verna said, “The main factor fueling the growth of on-demand streaming platforms is their original content. Consumers increasingly choose services on the strength of the programming they offer, and the platforms are stepping up with billions in spending on premium shows.”

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