Cable TV may not be the king of audio-visual content delivery to people. However, despite the steady stream of people subscribing to streaming services, cable TV companies aren’t exactly suffering. Essentially, cord-cutters are merely consuming content in a variety of ways.
New research confidently indicates that more than half of U.S. households prefer streaming services. Sure, Cable TV is losing out to Netflix, Hulu, Disney+, etc. but that does not necessarily mean it is on its way to retirement.
More than half of the states in the USA now belong to cord-cutters, but spend more than Cable TV subscriptions?
There was a time when people in the U.S were going all-in on streaming purely for the economics. At that time, companies like Netflix were offering streaming services that cost less than a monthly Cable TV package.
However, times have changed significantly. Netflix has steadily increased its subscription prices and added multiple tiers. It has also started to clamp down on account sharing, but that’s a different topic.
Part of me is exhausted by the number of streaming services available. Getting to be as expensive as cable TV.
The other part notices that the quantity and quality of content being provided by the competition is increasing.
— Professor Beekums (@PBeekums) June 9, 2021
Needless to mention, subscribing to streaming services has become more expensive than a Cable TV subscription. Overall, consumers in 37 states now spend more on average on streaming versus what they spend or spent on cable, claims a new report.
The price difference isn’t much, but the trend is clear. TV watchers aren’t buying a Cable TV Subscription. Instead, the majority of users prefer to stream their favorite content through the myriad of streaming services.
Cable TV companies aren’t losing out on revenue and consumers to streaming services in the long run:
Numbers for the first quarter of 2021 indicated the cable TV industry continues to bleed customers at an alarming rate. Needless to add, Comcast and AT&T lost the largest chunk.
Reports indicate the Cable TV companies could have lost close to 2 million subscribers in the first quarter of 2021. Even more concerning is that Cable TV companies have collectively lost more than two-thirds, or 75 percent, of subscribers since 2013.
Also, Neilsen doesn't include streaming TV services which is a big way people watch TV today as they cut the cord and transfer to streaming TV over cable TV!https://t.co/4lmULJjumZ
— RikuTheDawnSeeker (@Riku_DawnSeeker) June 8, 2021
Interestingly, it appears that Americans aren’t necessarily cutting the cord for good. There is a good chunk of subscribers who continue their Cable TV subscription while still watching content on streaming services.
Step into the future. Cut the cable TV ties, ditch the dodgy satellite. 📺 Streaming is where it's at. Give yourself the freedom to watch what you want, when you want without the fuss. 🎬 Find out how… https://t.co/Y0hidjnwbD
— Truespeed (@theTRUESPEED) June 8, 2021
And speaking of streaming services, the U.S. consumer base purchased more than 46 million subscriptions. Statistically speaking, the Cable TV industry may have lost about 15 million dedicated viewers, but not necessarily, subscribers to Cable TV subscriptions.
Collectively, Netflix, Apple TV+, Amazon Prime Video, and many more, and now making a lot of money compared to AT&T, Dish TV, and Comcast, but the latter still has a healthy chunk of subscribers. Incidentally, several of the Cable TV companies now have their own streaming services, which means they are merely moving ahead with the times.