Traditional TV viewing in the US could be overtaken by streaming as soon as five years from now, according to a new report from Roku.
In a 2019 cord cutting study, projections estimate that 60 million US TV households will access video on their TVs through streaming by 2024, eclipsing traditional pay-TV viewing for the first time.
Specific findings from this most recent study indicates the emergence of a new generation of cord cutters. Overall US market data has seen a reported two million Americans already cut the cord in 2019, following 3.5 million who did so in 2018. The number of total streamers don’t just include cord cutters or cord nevers—those who have never subscribed for pay-TV services—but also cord shavers, consumers who may still have traditional pay-TV services but have reduced their package over the last few years.
“Analysis indicates shifts in attitudes, behaviours and, most importantly, viewership among the new generation of cord cutters,” said Roku. “Essentially, their viewing behaviour more closely mirrors that of average mainstream TV viewers, but this new generation of cord cutters took the initiative to seek out better value and choice in how they consume TV.”
Roku noted five key factors that are driving people toward streaming and away from traditional pay-TV services. First, the option of vMVPDs allow consumers to access local channels and sports often at a reduced price of traditional TV. There’s also high-quality content available on streaming services; ad-supported video on-demand options, which was watched by 73 per cent of the study’s respondents; ease of use, with 89 per cent saying using a streaming device is easy and 74 per cent calling it more convenient than pay-TV; and the claim that cable and satellite companies aren’t devoting the effort to retain low-margin video subscribers.
The report shares that respondents seem to be glad they switched to streaming, with 82 per cent of cord cutters saying they are “extremely satisfied,” including 92 per cent of Roku customers. In fact, the study found 98 per cent of Roku cord cutters saying they will never go back to traditional TV, while 2/3 wish they had cut the cord sooner.
Find the full report here.