More than half of American households subscribed to broadband Internet have cut the cord on cable and satellite television services or identify as consumers who have never subscribed to traditional pay TV in the first place, according to new research released by Parks Associates this week.
The report, franchised from the data analysis firm’s Video Services Consumer Insights Dashboard, showed 46 percent of American households are cord-cutters — people who have moved away from cable and satellite TV, and comparable streaming cable-like products — in favor of a mixture of broadcast and connected TV platforms, while 12 percent of American households are “cord-nevers,” or individuals who have never paid for a traditional pay TV product.
The figures are based on data collected and analyzed during the third quarter (Q3) of 2024. Three years prior, around 35 percent of American households identified as cord-cutters, while just 10 percent said they were cord-nevers.
As cable and satellite churn continues to increase, streamers are saving cash by taking advantage of ad-supported tiers of popular subscription streaming platforms, including Max, Netflix, Disney Plus, Paramount Plus, Prime video and Hulu.
Around 59 percent of consumers who pay for a subscription-based streaming service are saving money by choosing an ad-supported plan, Parks Associates said. Jennifer Kent, the Vice President of Research at Parks Associates, said ad-supported plans are attracting customers who are worn down by rising costs associated with ad-free plans and who are bogged down by inflation afflicting other consumer goods and services.
“This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services,” Kent said in a statement.
