Streaming service usage increases as cable decreases
Cutting the cord is changing the TV business
Seventy-five percent of Americans still get their TV programs by cable TV or satellite, but more than 10 percent have cut the cord and are using video streaming services and over-the-air HD-TV antennas.
TAMPA, Fla. - Streaming services seem to be the way of the future as more people in the U.S. continue to cut the cord.
Seventy-five percent of American homes have cable or satellite TV. So far, 10 percent have cut the cords on cable in the last five years.
The average cost of cable is $100 a month, which is equal to $0.50 a month for each channel and $9 a month for each channel viewed. The average viewing of TV in an American household is 8 hours a day, while the average amount of channels viewed is only 11.
“In 2018, more than 3 million Americans cut the cord and that is twice as many as what they did in 2017, the reason, well people are paying for channels they don’t watch, and streaming subscriptions are cheaper,” said Geoff Simon, senior vice president of investments at Raymond James.
Twelve percent of all Americans have cut the cord on cable and satellite TV, and have switched over to streaming. The average cost of streaming services is $9 a month, and the average for multiple services is $30 a month.
With the numbers doubling year-to-year for people who are switching over to streaming, cable companies may soon start cut their prices to match with the streaming service rivals.