Study: Slow-but-Steady Increase in U.S. Cord-Cutters

SHERMAN OAKS: The cord-cutting trend in the U.S. continues to see a slow but steady rise, with consumers who state they’re extremely likely to cut the cord increasing from 1.9 percent to 3.7 percent within the last five years, according to a new study by Frank N. Magid Associates.

The most likely age group to discontinue pay-TV service is the 25 to 34 demo, with 7.1 percent saying they were extremely likely to cut the cord. The availability of OTT content via services such as Netflix and Hulu is the most common reason for the cord cutting, the study found.

“Though this is a small number of consumers, it still adds up to big bucks for major pay-TV companies,” said Mike Vorhaus, the president of Magid Advisors. “This is not some sort of ‘over the cliff’ emergency, but rather a ‘drip-drip-drip’ sort of problem for the pay-TV industry."

Magid also reported that 20 percent of American consumers who participated in the study have never subscribed to pay-TV service. Additionally, 61 percent would prefer a “skinny bundle” of cable channels allowing them to pick their networks for a smaller monthly subscription fee.