A newly released from New York-based research company cg42 finds that pay-TV providers could lose out on nearly $1 billion in revenue over the next year.
According to the Gotham research firm’s “2016 Cord Cutter & Cord Never Study,” some 800,000 cable TV consumers will likely leave their MSO in a cost-savings move that may see them shift to OTT platforms.
The study builds on cg42’s 2014 Cord Cutter Study by providing a focused look at both U.S. consumers who opted out of subscription-based paid-TV service in the last two years, and those who have never subscribed to paid-TV service.
The inclusion of these “Cord Nevers” is “reflective of the growing trend, particularly among younger consumers, to opt for streaming services and avoid subscription-based paid-TV altogether,” cg42 reports.
The research company surveyed some 1,119 individuals, via an online query system.
According to analysis of the study by The Wall Street Journal, pay-TV providers lose some $1,248 per cord-cutter annually. The average cord-cutter saves $104 a month, some 56% of their bill, by saying goodbye to their cable TV service.
The average bill among those surveyed for cable TV, phone, internet access and streaming services is $187 per month.
A respondent who never had a pay-TV connection spends roughly $71 on streaming services and home internet combined.
The most-watched streaming outlet for cord-cutters and cord-nevers is Netflix, with some 94% of respondents stating they have a subscription.