Research has found that more Americans are watching free-to-view terrestrial television, after cutting the cord on their cable subscriptions. We explore the insights behind why so many so-called "cord cutters" are ditching cable TV and bypassing VoD services altogether, and are sticking to good old-fashioned terrestrial TV.
Research by Nielsen has found that over-the-air viewing has increased by 14% across all homes in the US, over the past year, up from 9% in 2010. That equates to roughly one-in-seven American households watching free-to-watch terrestrial television on a regular basis. Nielsen has also determined that viewing figures for broadcast television were split by age. For 40% of the households watching over-the-air television, they watched no other form of video and were unlikely to have an internet connection in the house. The median age for such households was 55 and above. The other 60% of viewers had a median age of 36, had an internet connection, and were likely to own one or more connected device.
It's estimated that more than 50 million Americans will have "cut the cord" on cable or satellite subscriptions by 2021, with many no longer being able to justify the cost of TV packages that cost in excess of $150 a month. In fact, according to research by cg42, cord cutters who continue with VoD services such as Netflix or Hulu are still saving on average $85 a month. While it stands to reason that Boomer or Senior audiences who've cut the cord are content with free-to-air TV, cost-driven Gen Y is simply finding their premium TV viewing elsewhere – often within the live TV options of VoD services. "Consumers increasingly choose services on the strength of the programming they offer, and the platforms are stepping up with billions in spending on premium shows," says eMarketer analyst, Paul Verna.
Matt McEvoy is an editor at Canvas8, which specialises in behavioural insights and consumer research. In a former life, he was a journalist working in the sports, music and lifestyle fields.
