Several years back, a Comcast cable executive said that they believed cordcutting was just a fad and mostly just a media trend, something that would likely come and go, as people remained content in their standard television packages. But then as each quarter has passed, this fad has remained a consistent trend, and suddenly the language surrounding the shift has changed, even at the major cable companies.
Today, a report was released that projects in 2017 over 22 million homes will cancel their cable television bill, opting instead for SVOD options, and skinny streaming bundles. According to most consumers, these services offer a lot more flexibility in the shows they want to watch for a much lower cost.
eMarketer reports that by 2021, over 10% of current cable subscribers will cancel their television packages and make the switch.
“Younger audiences continue to switch to either exclusively watching [over-the-top] video or watching them in combination with free-TV options,” said Chris Bendtsen, analyst at eMarketer.
These “cord nevers” or younger people who move into their own housing, never signing up for cable packages, continue to grow as well, as eMarketer reports that in 2021, over 30% of US households won’t have cable at all, a major concern for one of the most dominant industries through the past several decades.
Of course there’s plenty of time for major cable to offer slimmer packages or lower their pricing making it more accessible to younger audiences. DISH’s Sling TV and DirecTV’s streaming service DirecTV NOW are just two examples, and Comcast has expressed interest in developing a portfolio of streaming-only services to compete.