Monday, March 11, 2013

More Consumers Not Watching Traditional TV

Nielsen released a recent study that is detailing just how much cord cutting has been occurring in the last 6 years.  According to their report, more than 5 million homes in the US don't have get cable or over the air TV service.  That number has more than doubled, from just over 2 million homes in 2007.  Described as "Zero TV Homes", these households tend to be younger than 35 and have no children.  "The main reasons 'zero TV' consumers cite for not having pay TV or receiving broadcast TV are cost (36%) and lack of interest (31%)."  So what do these households do for entertainment?

Not surprisingly, most actually own a television set and use it to connect to devices to watch from the internet.  Others let their computer screen be their source for entertainment.  Cable companies may not be worried as this group represents less than 5% of total US households.  Some may still subscribe to a cable company for broadband access only.  Still it is indicative of a growing trend.  With cost as a primary driver for dropping TV service, they may be harder to win back even as they grow older and have families.  With more reliance on internet programming and better programs available online, the interesting movement to watch will be just how quickly this "zero household" group grows. 

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