Bad news is on its way for paid TV providers, as the industry is showing signs that cord cutting is increasing. A new forecast from research firm eMarketer suggests that this year six Million more TV viewers will leave their cable provider for over-the-top video services.
The number of cord-cutters is anticipated to climb 32.8% this year to 33 Million. This is higher than the 27.1 Million cord-cutters expected for 2018 in last year’s forecast, which already exhibited a 22% growth rate.
Overall, 186.7 Million U.S. adult will watch cable, satellite or telco-delivered pay TV in 2018, which is 3.8% over last year. That decline is higher than the 3.4% drop in 2017.
Additionally, viewership on Netflix, YouTube, Hulu and Amazon. YouTube holds the largest audience with an expected 192 Million U.S. viewers, but Netflix is expected to hit 147.5 Million viewers by the end of the year. Amazon is expected to hit 88.7 Million viewers, while Hulu is expected to hit 55 Million viewers.
eMarketer principal analyst, Paul Verna, stated in a report “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. Another factor driving the acceleration of cord-cutting is the availability of compelling and affordable live TV packages that are delivered via the internet without the need for installation fees or hardware.”
A finding from eMarketer echo survey showed that 8% of paid TV subscribers claimed that they were very likely to cancel their paid TV service and not get another one in the next year. This is higher than the 6% of subscribers who planned to cut the cord in 2017.
Analysts from eMarketer predict traditional paid TV providers attempting to slow the cord-cutting migration by partnering with Netflix and eventually, other net TV providers.
eMarketer senior forecasting analyst, Christopher Bendtsen, stated, “Most of the major traditional TV providers now have some way to integrate with Netflix. With more TV and OTT partnerships expected in the future, combined with other strategies, providers could eventually, but not stop, the losses.