Could the COVID-19 pandemic further fuel cord-cutting by TV consumers across the U.S.?
Yes, new research from Parks Associates suggests.
According to Parks, some 25% of U.S. broadband households use an antenna to watch local broadcast TV channels, up from 15% in 2018.
Furthermore, roughly one-half of antenna users do not subscribe to any pay-TV services, either traditional or vMVPD services, Parks data show.
The study, conducted in the third quarter of 2019, examines the demand for broadcast TV, including pay TV, over-the-air, and online sources. The survey finds households that watch over-the air TV channels watch more video overall than average broadband households.
The study also examines uptake and perception of broadband services among U.S. households.
How, then, can Parks know that the coronavirus pandemic will lead to more cord-cutting, instead of a reverse trend drawing households back to premium MVPD packages?
“Penetration of broadcast TV and antennas increased markedly in 2019,” Parks Associates Director of Research Steve Nason said. “Thirty percent of U.S. broadband households report owning a TV antenna, and we expect upward trends both in ownership and usage to continue, especially as we face this public health crisis keeping people at home.”
Parks Associates is launching multiple surveys in April designed to quantify the impact of the COVID-19 outbreak on consumer behaviors, purchasing, and usage of connected devices and services.
Overall, 78% of U.S. broadband households watch live TV channels, Parks’ research found. “As households look to cut expenses, their reliance on antennas for information and entertainment will likely increase,” it concludes.
“Local news matters to most households—local broadcast channels are the most preferred channel types, and news is the most preferred broadcast content,” Nason said. “These content preferences shape the access habits of consumers, so antenna usage is increasing as households look to meet these needs, and we will see these trends increase as more shelter-in-place orders take effect and households look for inexpensive content options to offset lost wages.”
