Statistics of watching Live TV in the year 2016 demonstrated that viewers watch a relatively small percent of the television networks available to them, but that over the years, both channels available and channels viewed have increased.
Nielsen stated that channels receivable have started to decrease somewhat, as a result of lower multichannel penetration and cord-shaving. With cord shaving, pay TV subscribers cut their subscriptions to the least possible number of channels. These so-called skinny bundles offer just a handful of networks that people really watch, instead of the 200 or so that come with a standard package, many of which don’t get viewed.
Instead of cord cutting, viewers of today select to cord-shave.
The economics of cord shaving make sense since consumers still need a broadband connection to consume over the top (OTT) content such as Amazon Prime or Netflix. (source: Latticework)
The trend in 2016 reveals that the number of different channels viewed was lower, however by a very small amount, just one less channel over two years for the average adult TV viewer.
According to the Parks Associates, in 2016 12% of pay-TV subscribers downgraded their service to a smaller, cheaper package but still kept some type of TV subscription. Compare that to just 6% who added a service or increased their package in 2016 and you see that the trend of cord shaving will not vanish anytime soon.
12% of pay-TV subscribers downgraded their services. The Cord- shaving trend is on the rise.
The cord-shaving has also a huge influence on traditional TV viewing. Between the years 2011 and 2016 traditional TV viewing by 18-24-year-olds already dropped by roughly 1 hour and 20 minutes per day. In percentage terms, traditional TV viewing was down by 7.4% year-over-year.
The trends from 2016 will continue also in 2017. Stay tuned for the next Beenius blog post when we will talk about Millenials – the ‘cordless’ population!
Meanwhile, you are waiting for the next blog post, arrange a Demo presentation of Interactive TV Platform with Beenius representative.