Skip to main content
  1. Home
  2. Audio / Video
  3. News

Cord-cutting has grown by 48 percent in 8 years, according to Nielsen

Simon Cohen
By

Is cord-cutting a big deal? Do a lot of people really get their broadcast channels for free, instead of paying for a cable or satellite subscription? According to a new report from Nielsen that analyzes the over-the-air (OTA) trend in-depth, the answer is yes.

According to the company that made its name gathering TV ratings data, 14 percent (or 16 million) of U.S. homes now participate in the cord-cutting trend, which represents a 48 percent increase over an eight-year span.

Recommended Videos

Beyond this top-level statistic, which on its own isn’t that surprising, is a realization that not all cord-cutters are the same. In fact, there are two distinct groups within the cord-cutting universe, with a very small, yet growing third group that’s worth paying attention to.

Related
nielsen-ota-homes-2018
Credit: Nielsen Image used with permission by copyright holder

Here’s how it breaks down:

No Subscription Video On Demand (SVOD): 6.6 million homes

This group of OTA TV viewers rely exclusively on the free content they can get via their antennas, or online if they have internet access (not all of them do). They do not subscribe to services like Netflix, Amazon Prime Video, or the non-Hulu Live TV service. They tend to skew older at a median age of 55, they’re more likely not to have kids at home, and they’ve got much smaller annual incomes than average, at a median of $21,000. They own fewer devices like smartphones, tablets, or streaming gadgets, or may not own any. These households make up six percent of all U.S. homes.

Plus SVOD: 9.4 million homes

These households do subscribe to one or more streaming services, in addition to the free OTA content they pick up from their antennas. With a much younger median age of 36, they are more likely to be white parents of young children, and they’re digital natives with plenty of devices to choose from when it comes to streaming content. These households have a median annual income of $44,500.

These two groups form the majority of the cord-cutting universe in the U.S., but there’s a third group — more of a sub-group to the Plus SVOD crowd — that stands apart and may represent the most significant shift in cord-cutting behavior, at least as far as the cable and satellite companies are concerned. Measured for the first time in 2018, Nielsen labels them “Plus Virtual Multichannel Video Programming Distributor” (Plus vMVPD), and they are the Plus SVOD viewers who also subscribe to the growing number of broadcast channels available as over-the-top (OTT) streaming subscriptions. Companies like Sling TV, Hulu Live TV, and Sony’s PlayStation Vue, are among the leaders in this space. According to Nielsen, as of May 2018, there are 1.3 million OTA homes with a vMVPD, representing 1.2 percent of U.S. households.

Needless to say, when you spend more on your content, you’re more likely to have more money. Plus vMVPD viewers are wealthier, and more likely to have a college degree than the cord-cutters who don’t use OTT services. They’re slightly older than their Plus SVOD counterparts and much more likely to own connected devices than the average OTA viewer.

What does this all mean? We think it’s a sign that not only are consumers increasingly resistant to the idea of having to pay a monthly fee to their cable or satellite company, they’re willing to explore any options that give them this freedom — even if it means ending up with a total monthly bill that starts to look a lot like what they used to pay. It also demonstrates that companies like Roku, Tablo, Silicon Dust, Amazon, and Tivo, are on the right track as they try to create devices and services that bring together OTA, SVOD, and vMVPD services under one easy-to-navigate user experience.

Editors' Recommendations

Topics
Simon Cohen
Simon Cohen
Contributing Editor, A/V
Simon Cohen covers a variety of consumer technologies, but has a special interest in audio and video products, like…
Bose Noise Cancelling Headphones 700 are $80 off today
A woman wearing the Bose Noise Cancelling Headphones 700.

Best Buy's offer for the Bose Noise Cancelling Headphones 700 stands out as one of the most attractive headphone deals that you can shop today. From their original price of $379, they're down to a more affordable $299 following a discount of $80. There's no telling how long this bargain will last and if stocks are already running low, so if you want to grab these noise-canceling headphones for much cheaper than usual, you're going to have to complete the transaction right now. Tomorrow may already be too late, so act fast.

Why you should buy the Bose Noise Cancelling Headphones 700
The Bose Noise Cancelling Headphones 700 are featured in our roundup of the best wireless headphones as the top choice for comfort and conference calls. Their earcups are angled at 15 degrees to match your head and ears, the ear cushions are built using soft protein leather, and the lightweight headband is wrapped with soft silicone-covered foam, creating a comfortable fit for all-day listening. That can be taken literally, as the headphones can last up to 20 hours on a single charge, with 15 minutes of charging replenishing up to 3.5 hours of usage.

Read more
Hurry — Samsung just knocked $1,100 off this 85-inch QLED 4K TV
The Samsung Q60B QLED Smart TV sits on a media cabinet in a living room.

If you've always wanted to add a massive TV to your home theater setup but exorbitant prices have been holding you back, this may be the offer that you've been waiting for -- the 85-inch Samsung QE1C QLED 4K TV at $1,110 off from Samsung, bringing its price down to $1,690 from its original price of $2,800. It's still not cheap, but with this discount from Samsung deals, there's a chance that it's finally within your reach. The bargain is only available for a limited time though, so if you're interested, there's no time to waste. Proceed with the purchase now before you miss out on this amazing opportunity.

Why you should buy the 85-inch Samsung QE1C QLED 4K TV
The 85-inch Samsung QE1C QLED 4K TV packs most of the features that you'll expect from the best TVs, including 4K Ultra HD resolution for sharp details and vivid colors, 4K upscaling to improve the quality of HD content that you watch, and access to all of the popular streaming services through Samsung's Tizen Smart TV operating system. You'll have to make sure that it will fit your living room though -- you can check out our guide on what size TV to buy for help with that.

Read more
Everything announced at Amazon’s fall 2023 devices event
The Amazon Echo Show 8 at the Devices Event 2023.

The leaves are starting to turn color, and you know what that means: Amazon's annual fall Devices and Services event is upon us, bringing with it a veritable smorgasbord of product announcements, from new Fire TV streaming gadgets and Echo devices to Amazon smart home gear like Blink and Ring cameras, as well as Eero Wi-Fi routers and Alexa galore.

Taking place Wednesday, September 20, from Amazon's shiny new HQ2 second headquarters in the Crystal City neighborhood of Arlington, Virginia, the invite-only event was heavy on themes of generative AI and its use in the home, specifically how it relates to its own products. Dave Limp, Amazon's outgoing senior vice president of devices and services, delivered his last keynote, spilling the details on Alexa's most significant AI upgrade yet. Limp revealed its all-new advanced large language model (LLM), which will make the smart assistant more intuitive, conversational, and able to understand more complex nomenclature and nuances. And it's all integrated with Amazon's Alexa devices throughout your smart home.

Read more