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Report: Netflix, Hulu Linked to Cord Cutting

21 Apr, 2014 By: Chris Tribbey

A new report finds an estimated 7.6 million homes, or 6.5% of U.S. households, have Internet but no cable or satellite television service, up from 5.1 million homes in 2010.

The report from Experian Marketing Services found that young adults starting out on their own may never pay for TV service and 12.4% of households inhabited by an adult under the age of 35 are cord cutters, twice the national average. “Throw either a Netflix of Hulu account into the mix and the share of young adult households that don’t pay for TV jumps to 24.3%,” the report reads.

The report also found that those who own at least one smartphone are 20% more likely to be a cord cutter, and those who own a tablet are 36% more likely to drop pay-TV. Households with an iPhone are 33% more likely to be cord-cutters and households with an iPad are 65% more likely.

“While adults who watch video on either a tablet or smartphone are 1.5 times more likely than average to be cord-cutters, those who watch streaming video on a television are 3.2 times more likely to be cable-cutters,” the report reads. “Furthermore, those who say that they use their television primarily for watching streaming or downloaded video are 5.7 times more likely to be cord-cutters.”

The ability to stream or download video directly to the TV (with more Rokus, Apple TVs and Google Chromecasts invading living rooms) more consumers will cut the cord, the report concludes.

Overall, as of October, 48% of all U.S. adults and 67% of those under the age of 35 watch streaming or downloaded video at least once a week, up from 45% and 64%, respectively, six months earlier. Ninety-four percent of American adults watch some sort of video content on a TV each week and 84% watch something live.

Forty percent say they’re watching DVD during the week, vs. 32% for DVR and 13% PPV. As of February, an estimated 34% of American adults have an Internet-connected TV, and among those connected through a third-party video device, 41% use Apple TV and 35% use Roku.

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