The share of U.S. wireline broadband homes no longer subscribing to a linear pay TV service reached 37% in the second quarter, according to Kagan, a group within S&P Global Market Intelligence.
In the first quarter of 2014, Kagan found that only 12.5% of broadband homes didn’t take a pay TV service.
Kagan also said that nearly 30% of all occupied U.S. homes don’t subscribe to a multichannel video programming distributor (MVPD) service. The growth of broadband-only homes during the first half of 2020 is about 80% higher than it was during the first six months of 2019.
“Given the economic headwinds of the first half, U.S. households likely were looking to cut back on discretionary spending, including entertainment,” said Kagan senior research analyst Tony Lenoir. At a monthly $100-plus average, traditional multichannel services stand out in budgeting decisions, particularly in the era of streaming video proliferation.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!