Non-Multichannel Broadband Homes on the Rise

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NEW YORK: Kagan says the number of U.S. homes that have broadband but no traditional multichannel video package rose by 2 million in 2016.

“If there were any doubts left as to the materiality of cord cutting, the final 2016 tally for non-multichannel broadband homes should settle the debate,” said Tony Lenoir, a research analyst at Kagan. “While financial considerations likely are at play, the segment’s trend, combined with the erosion of legacy multichannel, primarily underscores the evolution of video consumption preferences.”

Non-multichannel broadband homes now account for some 13 percent, 15.4 million, of U.S. households, Kagan reports. The company projects the number will rise to 28 million homes by 2021.

“That forecast could end on the conservative side given the speed at which the TV ecosystem and the U.S. broadband landscape are evolving,” Lenoir added. “In the last two months alone, developments have further solidified a broadband-centric future for video delivery.”