US Cord Cutting Full Year 2018 Streaming Transition Picks Up Pace

The 20,000 Foot View: Cord cutting is now an established component of the US pay-TV landscape, reinforcing the role of the US as the canary in the mine for the global pay-TV business. Cord cutting accelerated in 2018, highlighting the secular nature of the phenomenon. However, this is not simply a story of decline but instead one of transition, with streaming growing ­— in a wider sense — the total base of pay-TV subscribers. With ever more overlaps in consumer behaviour and segments across traditional pay-TV and streaming, all signs point to more of the same in 2019.

Key Findings

• US cord            totalled            million in 2018, up                       million in 2017, representing a           
• Satellite pay-TV            lost            million subscribers in 2018,            largest loss of subscribers and            the largest percentage change           
• AT&T shed            most subscribers of any US            provider in 2018            million)
           of US cord cutters in            2018 were streaming video on demand (SVOD) users, illustrating that cord cutting is part of a technology transition
• SVOD services                       million subscribers in 2018, pushing            combined pay-TV subscriber base to           
• Half of            pay-TV subscribers in            2018 were            SVOD users 
• Cord cutters            around eight times more likely            use HBO Now and CBS            Access than overall consumers
• Hulu has            highest rate of cord cutting            by Amazon and then Netflix
• Binge-watching consumers            more likely to become cord            making up            of cord cutters                       2018
           of cord shavers regularly watch sports on TV, illustrating that streaming-savvy sports fans are cutting back their pay-TV subscriptions to retain sports coverage