Acceleration in Cord Cutting, Millions More to Follow

Cord cutting has become quite complicated. Consumers are not sure which of the streaming services available including Amazon, Netflix, and Hulu is the best for their buck. Nevertheless, consumers continue to cut the cord as they drop pay TV for video delivered by broadband. The acceleration of cord cutting is speeding up.

eMarketer released a new forecast that suggests this year over 6 million more television viewers will leave pay TV and use internet-based video services like Hulu and Netflix.

Cord cutters, those canceling pay TV, are expected to climb by 32.8% in 2018 to over 33 million. That is higher than a 27.1 million or a 22% growth rate for cord cutters that the research firm forecast for 2018, last year.

The decisions to leave pay TV are leaving few behind to pay companies such as AT&T DirecTV, Comcast and others for their entertainment. In all, 186.6 million adults in the U.S will view satellite, cable or telco-deliver television during 2018, which is down almost 4% from last year. That projected drop is higher than a drop of 3.4% during 2017.

Viewership is also growing on Amazon, Netflix, Hulu and YouTube. The largest audience is held by YouTube with an estimated 192 million viewers in the U.S., but Netflix should reach 147.5 million before the end of 2018, said the research firm.

At the same time, Amazon should reach viewership of 88.7 million, while Hulu’s viewership is expected to reach 55 million, said the company.

One industry analyst said that consumer are choosing services more frequently on the programming being offered, and the different video streaming platforms are spending billions on premium shows.

One other factor that has helped to drive the acceleration in cord cutting is how available affordable and compelling live TV packages are being delivered through internet without a need for the hardware or installation fees.

These findings follow suit with survey results that were released in June that found close to 8% of subscribers of pay TV surveyed were most likely to cancel their service and not sign up for another over the next year. That is higher than 6% of the subscribers that planned to do the same during 2017.